This isn't legal advice, and I don't have a real-world example, but some coverage issues to pay attention to might include injuries to common law employees, injuries involving liquor, and punitive damages for gross negligence.Keep in mind that umbrella insurance policies are negotiated contracts like any other insurance policy.

would you need to somehow make a contract for him to sign?

Unfortunately since you have no contract you just have to back burner these deals until something changes -- an estate being opened, foreclosure action, listing, more.

this is an auction .com property subject to overbid.. the chances of you getting this for that price are slimnot only that you will need non refundable EM of at least 3% and you have to close in the name that the contract is in.. no assignments this keeps the wholesalers at bay.. properties just don't sell that deep of discount in the uber hot Portland market.. at least not on MLS  heck lots sell for 100 to 150 k with nothing on them :)

Escrow executes whatever the contract says.

I was hoping to get the property under contract before The mold and bugs started coming in.

(alsohow much is costs)I am under contract for my first property and am trying to get my systems into place beforehand. 

This would give you the ability to sell your contract on it for less than $100,000 to an end buyer. 

Title is still under his name and we have a contract written up for an option to buy it at 430k.

If it's under contract to be sold to me and I write in the contract "and/or assigns to" and assign to a buyer who is using finance will that work?