Insurance On A Second Lien?

[Christopher Winkler]

When we invest in a senior lien, we always get some sort of forced place insurance if vacant, or until we can get on the homeowners policy. 

One thing we have not done since adding junior liens to the mix is put insurance on them. I assumed the property is insured, which is stupid since one senior lien we just sold that had been making payments was not able to get insurance since he went so many years without it. That cost us $59.50 a month

And we just received the monthly insurance mortgagee notification from the contract for deed that was just paid off in North Carolina, and it triggerred my brain to ask myself, should I be putting insurance on the 2nd liens until we are added as loss payee?

And if it did burn down, or blow away, and we are not on the homeowners insurance, nor our own insurance, could we suffer a full loss? All comments and answers are appreciated!