Making sure I understand insurance with seller financing

[Scott C.]

I'm trying to do my first Lonnie deal and I want to make sure I completely understand how the insurance process would work on a claim. I would be named as the beneficiary of my buyers policy.

From the insurance payout, I assume I would keep the difference between the balance owed on the home and the buyer's purchase price (plus cost of disposal of home if total loss) and the buyers would get anything left after that?

What general ballpark does it cost to have a lot cleaned up if the home is destroyed in the event of a hurricane or fire? 2k?