Home insurance with seller financing

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Hi BP community, 

I'm looking into buying a SFH preferably with seller financing. My question is how would the home insurance part work? Just hypothetical questions: Can the seller make it a condition of sale to have an apropriate insurance? Or should the seller take out a policy? If no insurance is taken out, what happens if ie. the house burns down? What if the policy is cancelled/lapses before full purchase price is paid? How would the seller find out about it?

I know all the answers in case of a conventional bank loan, but the seller financing is new for me. 

Also I might try to sell my house using seller finance or lease option later on. Just want to know what to watch out for in advance.

Thanks for the help.