The purpose of title insurance is to protect an investment. Thus, when you spend $100,000+ for a new home, it certainly makes sense to pay for a guarantee (title insurance) that your ownership is free of liens and other problems.
Two things disappear in your situation. First, you have almost no investment to protect. Second, although titles can occasionally get scrambled, it's very rare for an individual timeshare week to have a lien against it.
Further, the only debt against the timeshare would likely be a developer loan to the original buyer. The only two timeshare finance companies (FirstAgain and Tammac Financial) write their loans as unsecured consumer loans, thus eliminating other logical sources for liens.
Thus, do your due diligence, including contacting the resort to verify that the seller is the owner of the represented week (week of the year, size, lockout (?), view, any existing loan on original sale, amount of MFs, etc.). Then skip the title insurance.
Also, check this
Timeshare Purchaser's Checklist for other questions to consider asking of either the seller or the resort.
