Mortgage companies will NOT take care of this for you and will simply pay the higher premium from your escrow account. If you miss the proof of primary residency request prior to policy renewal, you can submit proof during the policy period and request a reimbursement of over paid premium.
Also, mortgagee amounts can drive required flood insurance limits higher then necessary. As you pay down your mortgage, have your agent help assess your flood insurance limits of coverage (building & contents).
Next we'll discuss Flood Elevations Certificates.