Insurance coverage in a wraparound loan

[Alicia Marks]

We are selling a property via owner finance, but wrapping our current mortgage. The confusion is how to handle the insurance. I am getting different answers as to if we both need to carry coverage with us making the first loan and them naming us on their policy. Other answers I have seen are that we carry to the first mortgage but the end buyer pays the premium, or some other option. Double coverage seems like a waste of money to me and a possible finger pointing fiasco if a claim happens. We are using a service to set everything up as well as a third party loan services. We want to make sure we are acting according to Texas law, but don’t want to spend on something we may not need.
TIA!