Question of insurance for a wrap purchase

[Tiffany Good]

I am purchasing a home using a wrap-around mortgage. The seller has an attorney writing up all the paperwork, but the question has come of insurance. The deed is staying in the sellers name until the loan balloons (6 years), or we assume the loan.  Because of this, I believe the insurance should remain in the seller's name and we should be named as additionally insured, to avoid alerting the lender or dealing with 2 policies. Is this correct? I welcome any input!