Daughter wearing insane headgear (8)
I believe the answer is:
bandanas
'headgear' is the definition.
(bandanas are a kind of headscarf)
'daughter wearing insane' is the wordplay.
'daughter' becomes 'd' (genealogical abbreviation).
'wearing' means one lot of letters goes inside another.
'insane' becomes 'bananas' (informal term for mad or crazy).
'd' going within 'bananas' is 'BANDANAS'.
(Other definitions for bandanas that I've seen before include "Large oloured neckerchiefs" , "Brightly coloured neckerchiefs" , "Large coloured neckerchiefs" .)