When does a mortgage policy expire?

A mortgage policy expires when the mortgage is paid off. This is because the insurance coverage provided by the mortgage policy is directly tied to the mortgage itself. Once the debt is satisfied, there is no longer a financial interest that the title insurance needs to protect against potential claims or defects concerning that mortgage.

In contrast, a mortgage policy does not automatically expire when the property is sold or transferred to a new owner, nor does it have a specific expiration period such as five years. The protection and coverage are specifically linked to the agreement between the lender and the borrower, which is extinguished once the mortgage obligation has been fulfilled. Thus, the most accurate answer relates directly to the satisfaction of the mortgage obligation.