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.

Everyone deserves a safe place to live in, may be crappy finishes but they should have risk of being injured by structural flaws.

What happens if you buy another property like that.. now you are in the hole $1000 a month.Sure your net worth would be higher in the end, but what happens if you lose your job, get injured sick etc... you now likely lose that property.  

Do I need to put a clause in the lease releasing us of any responsibility if someone gets injured?

Someone injures themselves on the sidewalk and you are now liable.

Injuring someone in an auto accident is much more common than a large Liability claim at a rental property.  

Or worse, God forbid the tenants get injured in the flooding while on the property.As I understand it, I need a non-FEMA flooding policy, and I have no idea which companies I should start talking to.Thank you!

This makes me worried that if something does happen to them, say they get injured at the pool, they could sue me.

I was wondering, if I hire an employee (General Labor) and he is injured during a work at the residence.

Sure you may save a buck , but when something goes wrong you will pay dearly .https://www.proremodeler.com/who-liable-injured-subcontractors