But the detention pond could malfunction and overflow, flooding the nearby houses...

It's not my fault my lease just so happens to end in March and the meters were malfunctioning. 

Like that water leak under the kitchen sink or a malfunctioning appliance.

Not to mention the potential safety hazard of a malfunctioning furnace.

Also if I was the tenant, would I want to renew a release on a house where things keep breaking or malfunctioning? 

Tenant will notify Landlord in a timely manner of any damages or problems as they arise, including damages caused by Tenant, malfunction of appliances or fixtures, and water/moisture leaks and spots.

After I closed on my new 5-unit property this past december, I had to replace two heaters that were at their end of life and malfunctioning.  

There were several other issues including (but not limited to) severe water and termite damage in the garage and broken or malfunctioning windows to just name a few more.

For example "if I or one of my family members is injured or killed by a malfunction of one of the appliances in your home, will your insurance cover it?"  

One or more professional inspectors should look for defects or malfunctions in the building’s structure, such as the roof, plumbing, or foundation, and detect pest infestations or dry rot and similar damage.