If do not pay your insurance,it can be more expensive than your current policy. If a mortgagor does not pay insurance premiums, the mortgage company, will place their own insurance, which can be times the amount of premium than you are paying.
The coverage will be reduced if the lender force place the insurance to just protect them via the principle amount due on your mortgage. The insurance is there to pay the mortgage off if the house burns down. This insurance really does not cover you at all!
So your question depends on your intent and the amount of risk you want ot take.
First Weber Group
Certified Distressed Property Expert