Mortgage Company did not pay my insurance

Here it is Christmas time and my wife and I get a letter from our ins company stating that our policy has been canceled since Nov. Our money to pay was in the escrow account and the mortgage company made a payment of 100.00 plus dollars to the ins company but not nearly enough for the policy. I'll say again the full amount of money was in their hands to make the payment and they didn't pay. We have gotten no statements or notices alerting us to the fact that the mortgage company didn't pay or that our ins was in jeopardy. So today we get the letter of cancellation. We called our ins provider and he said this is the 3rd case he has had and there is nothing he can do. Not to mention the company isn't writing any new policies.

What can we do????