EVER considered what happens if your tenant gets injured or, even worse, dies on your property? With the recent explosion of the buy-to-let market accounting for one in five new homes being purchased as second or investment properties, thousands of landlords are not insuring rental homes adequately. So if you're planning on renting out a property, here's how to safeguard your investment.

Inform your mortgage lender

If you rent out a property that was formerly your personal residence, you need to let your mortgage lender know, as any insurance previously set up may be considered null and void if problems arise from your tenants.

Don't skimp on insurance

Just because it's not your own home, don't be cheap about the insurance cover. Protect your rental property as you would your home, covering for a full range of accidents and events such as burglary, burst pipes, fire, smoke damage, subsidence, malicious damage, and storm and flood damage.

Get emergency assistance cover

It's always worth paying that little bit extra for emergency assistance coverage for your rental property, particularly if don't live nearby. This allows tenants to call out emergency specialists for burst pipes, overflowing toilets or lost or stolen keys, even at 3am.

Landlord liability

As a landlord you're responsible for your tenants' safety.

So make sure you are covered in the event that a tenant gets injured on your property; eg, gets electrocuted due to faulty wiring, falls down the stairs due to a dodgy step, or is injured by an insecure wall/fence. Landlord liability covers any expenses/compensation awarded to the tenant, and any legal fees incurred by you.

Don't forget contents cover

The level of contents coverage varies depending on whether you're renting the property as furnished or unfurnished. If renting the property furnished, keep an inventory of furniture etc.

But do remind your tenants that they are responsible for personal items that are particularly valuable like a very expensive diamond ring, high-priced art, or even a bicycle. Landlords can only insure contents that belong to them, and therefore cannot include tenants' goods in the overall home insurance.

Certain types of tenants may increase your premium

Check with your insurer about specialist lettings. For example, if you always let your property to students you may need to pay a little extra as students may carry a higher risk in terms of property wear and tear/accidents.

Holiday homes coverage

Holiday homes are a different kettle of fish when it comes to insurance and usually require higher contents coverage.

Also check out rental guarantee coverage in the event that your tenants default on the rent.

Loss of rent

Make sure you're covered for loss of rent, in the event that the property is uninhabitable following a fire or flood or other event.

Remember if you let property, it's considered a business

No matter how small or humble the property, once you let it, it's a business transaction, and as such you must take out special insurance which covers not only your tenants, but also anyone who enters the premises to carry out work; eg, cleaning, gardening, electrical repairs etc.