College Students, Families Urged to Understand Insurance Options as Number of Renters Surge

Increased spending on items taken to college and a national rise in the number of renters has prompted insurance experts from Travelers (NYSE: TRV) to relay the importance of understanding renters insurance.

The National Retail Federation said college students and their families will spend an average of $618.12 on back to school merchandise this year, a 3 percent increase from last year. If those students are taking their personal items to an off campus apartment, it's best to check with an independent insurance agent to consider the need for renters insurance.

In addition to college students moving to apartments with expensive high-tech gadgets, the U.S. Census Bureau recently reported that the number of renter-occupied housing units nationally increased from an estimated 35,678,000 in the first quarter of 2008 to an estimated 36,426,000 in the first quarter of 2009. This is an increase of nearly 750,000 renters.

"Anyone renting property needs to understand that the investment they've made in their personal items will not be protected without the proper insurance policy," said Elaine Baisden, Vice President of National Property for Travelers. "Between laptops, iPods and other electronics, it's a big financial investment, so it's important to be able to replace them in the event that they are damaged or stolen."

Renters need to protect items that they have purchased including things like furniture, clothing and appliances since they are generally not covered by the landlord's insurance. Renters insurance provides financial protection for personal possessions in the event of theft, fire, and plumbing losses. It also provides liability protection and other valuable coverage for the renter.

"If you owned a home, you wouldn't go without a homeowners policy, so just because you're renting doesn't mean you should forego insurance. A renters policy offers peace of mind at a relatively nominal cost," said Baisden.

To learn more about renters insurance, read Renters Insurance 101, talk about it with an independent insurance agent or visit Travelers.com.