Title insurance covers clean title as ling as you own the home.
It doesn’t cover the fraudulently filed new title. It only covers your title from when you purchased it as the buyer. But it this fraud you are the alleged seller, so not covered.
The original covered title is still clean, but moot because it was replaced with a fake transfer and new title at the recording office.
Then the new seller takes out a 2nd mortage and disapears with the money.
Bank forcloses and evicts. It takes a while to unwind.