Home burned down need answer about insurance

I was renting to own a mobile home and i had a fire that distroyed everything friday. The only paper the seller and we signed stated " For the purposes of liability against the seller we agree to hold harmless any financial amount from accidents or injury pertaining to or caused by buyers until liabilty insurance is procured". We had renters insurance wich has a liability policy but she did not get home owners insurance like she said she had on it. we still owed 7000 dollars on the mobile home. Do we have to pay off the trailer? Do we have to pay to have her trailer removed from the park?