That’s a simplified explanation. Title insurance covers a number of situations, fraudulent transfer of title is only one of them and is more likely to be something like “A wife sold her dead spouse’s house, but it turns out that there was a dispute about the will and now someone else is claiming that the house actually wasn’t hers to sell”

That wouldn't be possible in my country because she would not have any right to sell the house until it was transferred to her. This transfer would happen during the probate process. The probate process is where all issues regarding the will/estate and disputes are settled. Once probate is complete, ownership is set in stone and the widow would have every right to sell her house.