You are correct. As per the End User License Agreement, MozyHome Free accounts are subject to deletion for inactivity after 30 days. We highly recommend that all users check their backups regularly, but it is especially important for Free account users to check their backups and make sure they are running so the account does not become inactive due to the backups not occurring.
As for the paid plans with MozyHome and MozyPro accounts, the inactivity policy does not apply as long as the account is kept current. We do recommend upgrading accounts to paid or checking the accounts regularly to avoid the inactivity policy being enacted.
I am going to go ahead and send you a private message here via the community to request your account information so I can check on your account specifically and see what has occurred with it.