We only have a couple of consumer purpose, dwelling secured loans located in a SFHA that required escrow of the flood insurance premiums.
If we have paid the flood insurance premium from the escrow account but have not received verification from the insurance company do we still need to send out the expiration notice to the borrower?

Have you contacted the insurance company to ensure it received the payment and that you are listed as mortgagee? I would do that before giving the customer a headache.