I think your sale terms are the exception, not the rule. I've never, ever not seen a contract including the ones I use that didnt either say at time of sale it is the purchasers sole responsibility. If I hold property or livestock and am negligent then thats a claim for the seller against my liability coverage.
My significant other used to be an equine and other large animal insurance adjuster before she switched back to property and casualty. She says thats the standard of the industry, on the date the sale is effective it is no longer the sellers property. Legally, the seller cant continue their policy since they dont own the property and lack an insurable interest unless the payment is simply a deposit of purchase pending inspection. If they sell it to you and cant insure their interest and it dies and they refund your money then they lose out all the way around.
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