(A) When inability exists. A servicer is considered unable to disburse funds from a borrower's escrow account to ensure that the borrower's hazard insurance premiums are paid in a timely manner only if the servicer has a reasonable basis to believe either that the borrower's hazard insurance has been canceled (or was not renewed) for reasons other than nonpayment of premium charges or that the borrower's property is vacant.
If the policy is still active and the property isn't vacant, pay the insurance.
As for property tax, you're likely going to pay it eventually one way or another and the amount is just going to increase. My rule of thumb is to go ahead and pay those as well.