Mortgage company didn’t pay insurance company on time, and insurance company dropped us. This happen to anyone before???

Our mortgage recently got bought out by Mr. Cooper. We have no say in this matter obviously. Well we just received a letter in the mail stating out insurance policy has been dropped due to late payment. We payed our mortgage on time (in fact it's on auto pay) but the mortgage company failed to pay the insurance on time. They payed a week late and the insurance company policy is to drop us after a week if no premium was received.

This happen to anyone else??? What was the outcome. Freeking out a bit.