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?

[Don Konipol]

Quote from @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?

 I can answer satisfactory, but I will refrain because my answer may not be the optimal way to do it.  Go to an attorney specializing in Texas real estate transactions who can set the whole thing up - if the attorney you're using is not familiar with the optimal ways to insure wraps you're using the wrong attorney.