My mortgage company did not pay my home insurance last month. My policy was cancelled. Is the bank now responsible for insuring me?

If you maintained an escrow account with the bank and made regular deposits for the payment of taxes and insurance, the bank must make timely payments of these items from the account.

Let’s say the bank does not pay the insurance premium when it is due and the policy is cancelled. In this case, the bank must either contact the insurance company and have the policy reinstated, or purchase a policy with another insurer.

However, during this time you remain responsible for continuing to pay the insurance through your escrow account.