Lessor states on contract that she is responsible for insurance, comes back 2 weeks later to say we need to get insurance on a lease to purchase!! Can you even get insurance on a lease to purchase property?

No, you have to own the property to have insurance on the property, they may require you to have a renters policy ( if it is in the agreement)
And you want one anyway, since you want the liablity and coverage on your belongings in the home.

I would guess what has happened, is the Lessor did not know that insurance on a rental house is about twice as much as on a home you live in,