If ever there were an accident or a fire for instance, the owner would be criminally liable.

@Kevin OBrien Our did but it was a complete accident.

Nobody lives like that on accident.

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.

Also, since my neighbor is hiring a handyman, I'm concerned if he were to have an accident while working on my backyard, who is going to be responsible? 

Sometimes cheap labor could be costlier on the long run, i.e. vacant unit for longer time frames, accidents, liability for hiring unlicensed contractor.

It all began in the mid 1800's when Billy The Kid would"accidently" ram his ticonderoga into the Wells Fargo express, then proceed to rob them. :-)

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

I kinda got into the REI world on accident with a strategy I now know is called "house hacking". 

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.