There is reason in Halacha to cover the head for kiddush out of respect for the beracha, however a hat would certainly suffice.
Halacha does not require one to wear a talis for kiddush, but some Chassidim have such a minhag. The is a Pesikta that writes one should fulfil "zachor es Yom HaShabbos l'kadsho" through "atifa" which usually refers to the talis. This pasuk is the same one used to derive the obligation for kiddush. Therefore the Minchas Eluzur of Munkatch wore his talis for kiddush in the morning, but the Rebbes of Satmar and Sanz did not. Since this is an issue of minhag, one should follow the custom of his father.