Insurance and Structuring on a WRAP

[Chris Allen]

I am selling a property on a WRAP. My question is about how to handle the insurance because I am hearing mixed things. 

I have heard 

1) That the buyer can just be added as additionally insured on my insurance. 

2) That I can be added on as additionally insured on their insurance

3) That I need to hold my own insurance and the buyer needs to have their own as well. 

I spoke with my insurance agent I normally use about getting a policy on the property to get rid of my lender placed insurance, and then adding the new buyer as additionally insured. He mentioned that I will be unable to hold a policy on a property that I do not own and I should be listed as the mortgagee on the buyers insurance.  So if that is the case, how do I show proof to my lender that I am covered? Do I just keep lender placed insurance and have my buyer get their own with me as the mortgagee? Or is there something else that I am missing?