In CA if I owner carry, what happens if the house is destroyed?

[Account Closed]

This is in California.  I expect to come into some inheritance money in the next couple of years (it's in probate hell right now - if you want to get revenge on your relatives, leave a bunch of money and no will, and 7 heirs to fight over it).

My background is in property management, and initially, I was thinking about buying a cheap rental, paying cash.  But, I'm researching buying a cheap place for cash, then selling it with owner carry, with the thinking that I wouldn't have to deal with tenant problems and maintenance.  

My main question here is, what happens if the place burns down?  This is an issue in CA.  From my research, I can require the buyer to carry insurance, but has anyone here had a situation where you were the seller and you owner-financed and the property was destroyed?  What happens?  Thanks.