Do I need downloads insurance? How it works
Do you know how much your digital music collection is worth?
The music industry has been unable to ignore the popularity of digital downloads, however new technology brings with it new concerns.
If someone broke into your home and stole your mobile phone, laptop and iPod, would you be covered on your insurance policy for the cost of replacing your music, films, ringtones or software you'd downloaded?
If you are taking out downloads insurance, whether as part of the standard terms of a contents insurance policy or as a separate product, your cover will include the following; music, mobile phone ringtones, television programmes, films, games, software and computer programs when stored on an MP3 player, desktop PC, laptop, mobile phone or home entertainment system.
If you are thinking of taking out a separate downloads policy, you should first call your insurer to check if you're already covered - some contents insurance policies include it but don't say so in their terms and conditions.
Be aware that you'll probably need to take out additional personal possessions cover to ensure the content on your MP3 player, laptop, and mobile phone is covered when you take these outside the home.
Keep hold of email invoices or credit card statements as you'll need proof of purchase to make a claim. There can also be an upper limit for claims – check this if you have lots of downloads.
Are you covered?
Keep your receipts safe as you will need them for a claim
Finding out if you are covered or not can be a tricky process.
The evolution of the ways in which we purchase and store music mean that the issue of insuring your downloads is relatively new.
Indeed just under half the insurers we surveyed (22 out 46) included cover for digital downloads as standard. However it is thought that most will begin to extend their standard cover to downloads soon.
It's worth checking under the Contents Cover section of your policy to see if you're covered; try looking for a subsection called ‘Downloaded information’ – this was the case for example with the Direct Line and Nationwide policies.
According to Malcolm Tarling, a spokesperson for the Association of British Insurers; 'Music on your iPod or computer is the modern day equivalent of your record collection. Insurance companies continue to review their policies to fit in with modern lifestyles. [Insurance] companies have told me that they are looking at the situation.'
For how much?
You should also investigate what exactly you're covered for. All of the insurers we surveyed provide cover for fire, flood, storm and theft from the home. A few cover accidental damage.
All exclude hardware/mechanical failure and virus attacks – so ensure you have adequate firewall, anti-virus and spyware software (see our reviews of security software).
- Frequent Internet user? Read our guide to staying safe online
- How safe is online banking? Find out in our review
- Looking for a new laptop? Take a look at our expert guide to getting the best
