Monument MortgageCare Gesture of goodwill.

lizziegizabit

Hi, 
I've just received this letter from Barclays. 
We moved into our current address March 2014 and honestly thought that this was for our current mortgage and so has continued paying without question at £28 a month. Must admit we're not very savvy when it comes to insurance policies.  We had a letter from Monument in November saying that this policy would end in February this year as was at end of its original 25 year term. So this is for our old mortgage at our old address and obviously wasn't cancelled when we moved in 2014 and took out a new mortgage with them. I'm unsure if that was our responsibility to do or if should have been automatically done when we paid off old mortgage. (I hope that makes sense.) 

Do I just accept this "Gesture of Goodwill"? As far as I can work out £170 is not at least 2 months worth of  premiums at all, should be be more like £450ish.
I have re read through the original policy they included with the letter in November and it was on a decreasing balance term so we've effectively not had any balance since March 2014 when we paid off that original mortgage.
I'm confused. Any advice would be great. TIA