Also there is the issue of guest liability as she was not protected under this type of arrangement in case someone is injured. 

Slip and falls, Hot water burns, Children injured on mini blind or electrical cords, falling tree branches, busted pipes, etc

An emergency is something that must be dealt with immediately to avoid injuring someone or damaging the property (i.e. loss of heat, broken water pipe, fire).

If you get injured at 35, you could be collecting an annuity income for 50 years!

How do you deal with making sure they install it securely, as if one falls out it could seriously injure or kill someone.

If you are a injured veterans who claims benifits up to 10% you do not have to pay the funding fee.

Several have been killed and many injured.

Wrong, Perry Mason, the injured party will sue you in the state where the accident happened even if you have an out of state entity and you will have to comply with the laws of the state where the accident occurred.

I'm not aware of any renter's insurance that would cover damage to the property itself - most policies cover the tenant's belongings and may include liability coverage if the tenant negligently injures someone on the property, for example. 

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.