;) Amit, your insurance should not be set with respect to your net worth, that's irrelevant, unless your net worth exceeds the risks assessed, it needs to be established as to the risks and issues mentioned above.As mentioned an insurance company can pay and walk away, if your loss is greater than that you're dipping into you money.Consider too, death cases are based on the loss of income of the injured party, professionals will have a greater value assessed, which means more insurance coverage would be justified.If your net worth is in 8 figures, you're probably fine, otherwise you may want to review your coverage, liability coverage is cheap. :)

But you never know when it will be a $6000 repair or a $200K burned down house or a $1 million lawsuit cause somebody gets injured.

However, if the contractor is injured and doesn't have workers compensation he can (and will) go after you for his medical costs, pain and suffering etc.

If that is the case, the injured party will sue the property owner.

I had my car stolen twice and was mugged three times, once in Grosse Pointe and once at gunpoint where my companion was shot and badly injured.

From a legal standpoint, please check into whether or not your insurance policy would cover her, in case she were to get injured. 

Getting insurance is very important, but let's imagine that you have $1mm of insurance on a property and someone is injured on the property and wins a claim for $2mm.  

Besides the insurance requirement, just because the garage would be off limits doesn't mean that kids wont play nearby ignoring your rules and get injured.

Or you're injured severely enough to keep you bedridden for three months?

I want a guy who is licensed, will warranty the work and carry insurance that will protect my property in case he messes up. flood burst pipe/fire/boiler blows up etc...but when hiring carpenter, painters or flooring people ...do I really care if they are insured or not. those folks will show you certificate of liability insurance ...which does not protect the guy from injuring themselves on the property. how much damage a painter can cause or flooring guy ?