Liens can be a scary subject. There are all kinds of liens. If you have a "big" job, some part of your contract should require your General Contractor to show proof that all subcontractors have been paid before you make your final payment. Good advice - seldom followed.
One thing about liens, they are fairly easy to file. Some companies use liens as a threat and file frivolous liens to "force" action by you. All a lien really does (by itself) is make sure you don't sell the property against which the lien was filed until the debt alleged against that property is settled (notice that "alleged" does not mean a valid debt and that "settled" does not necessarily mean "paid"). Once a lien is filed, the party filing the lien has to prove, in court, that the debt is valid and you have a chance to prove it is invalid. If the other party is successful and proves to the court that a debt is valid, then the court issues a "judgment" for the debt which can then be used to file a foreclosure action, seize the property, and sell it to pay off the judgment.
Title Insurance does not protect against liens - only against defective titles. If the original builder failed to pay some subcontractors and they filed liens against your home, then maybe your title insurance would help you out as the builder did not pass a valid title for the home to you. Other that that remote possibility, title insurance doesn't protect against liens.
By the way, on some liens such as a mechanics lien, it will "expire" or become invalid after one year if the party filing the lien does not take action within one year to prove the validity of the alleged debt.
No matter what, if you have a lien filed against your home, and if you think it is invalid or have other questions, best advice is to seek qualified legal advice - consult with a lawyer familiar with liens.
