By Gayle O'Connell, senior vice president, marketing& communications, Arbella Insurance Group

Every year, more millennials become first-time renters aftergraduating from college or moving out on their own. Unfortunately,the vast majority of them also join the ranks of the nearly 70percent of U.S. renters that don't have renter's insurance.

Young people often don't know that they're not covered, anddon't understand that they could lose everything they own in thecase of a fire or burglary. What's more, a shocking 52 percent ofrenters surveyed by InsuranceQuotes.com said they thought they couldn't afford renter'sinsurance, with more than a fifth estimating that itwould cost them more than $1,000 a year.

The good news is that insurance agents and brokers are perfectlypositioned to help correct the misconceptions of many millennialrenters. The next time you're meeting with a young first-timerenter, here are some things to keep in mind:

1. ALandlord's Policy Doesn't Cover The Tenant'sPossessions

Everyone in the insurance industry knows this, but a surprisingnumber of millennials don't. Know your audience and remember thatmost young renters have never had to think about insuring theirvaluables before. Many young renters assume that their landlord'sinsurance policy covers their personal property inside theapartment, and they don't need insurance like homeowners do. Besure to clear that up.

2. It'snot as Expensive as They Think

The fact that so many renters overestimate the cost of renter'sinsurance is a big problem, but it's also easily solved. Explain tomillennials that most renter's insurance policies costsignificantly less than they think: the NationalAssn. of Insurance Commissioners (NAIC) estimatesthat a policy costs $185 per year on average. And given that thetypical burglary causes about $2,100 in losses, renter's insuranceis actually quite a good deal.

3. “I Don't Own Enough Stuff” is No Reason to GoBare

Many first-time renters underestimate the value of the propertyin their apartment, but their possessions are usually more valuablethan they think. Millennials will often bring furniture with themfrom their parents' homes, and don't realize how high thereplacement value of these items can be. Household items likecouches and mattresses cost several hundreds of dollars each toreplace; make sure that the millennials you work with understandthat, too.

In addition, many renter's insurance policies either include orhave the option to include identity theft coverage. Since mostmillennials own either a laptop, smartphone or both, make it clearthat their renter's policy can cover not only the loss of theirdevice but also any misuse of the financial data that's stored onit. Financial fraud from identity theft can do serious damage to ayoung person's finances – let them know that renter's insurance canprotect them.

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4. ItCovers More Than Your Property

Beyond covering personal property, most renter's insurancepolicies also cover liability and additional living expenses (ALE). Explain to your youngcustomers that if someone gets hurt while visiting their apartment,their renter's insurance policy can help cover any liability costs.Additionally, if their apartment should be destroyed or becometemporarily uninhabitable, most renter's insurance policies willcover the costs of hotel rooms and other living expenses. Theseissues are not typically the first thing on the mind of20-somethings getting their first apartment, but they're veryimportant.

Make it Easy for Them

Just like everyone else, millennials are more likely to dosomething if you make it easy for them. Try to take advantage ofany bundled policies that the carriers you work with are offering.If the young people you work with can simply add renter's insuranceto an existing policy, they'll be more likely to do so.

Arbella has had great success with its Carpartmentprogram, which bundles renter's insurance with car insurance.When people sign up for car insurance with Arbella, the carrieroffers to include renter's insurance at a reduced price. Becauseall drivers are required to have auto insurance, Carpartment givesagents a regular opportunity to explain the importance of renter'sinsurance, and many policyholders decide to expand theircoverage.

Young people have a lot of misconceptions about renter'sinsurance, but it's not hard to explain its importance if you knowwhat to say. Most first-time renters don't understand just howrisky it is to go without coverage (and how inexpensive it is toget it), and insurance agents with the right information andpolicies can do a lot to increase the number of millennialpolicyholders.

Read related: “Houseof Collusion: Landlord, Tenant Arrested for Arson,Fraud.”