Read the small print on home contents insurance or risk losing the lot, warns Moneynet.co.uk

Many of the UK’s big name insurers are still not paying out for claims on the loss of downloaded music – despite the fact that digital sales now form a massive chunk of the UK’s music purchases

With the sales of online music expected to top £160m this year, the cost to the consumer of replacing their purchases without insurance is colossal, says financial data comparison site Moneynet.co.uk

“It would be a mistake to assume that your home contents insurance will cover your downloaded music should it be lost either through theft or damage of equipment,” says Moneynet.co.uk ’s Richard Brown.

“If your CD collection was stolen or went up in smoke it could cost hundreds to replace it but a standard home contents insurance policy would cover it. However, not all insurers have revised their policies to treat downloaded music in the same way.

“To avoid being left with the sound of silence and badly out of pocket, consumers need to check that their insurer has brought themselves into the 21st century.”

Some of the UK’s leading insurers, including Endsleigh – the biggest insurance provider for students – Barclays and Bradford & Bingley, whilst pondering the idea, do not currently pay out for their customers’ download losses.

Insurers who have kept pace with the online revolution include Churchill, Liverpool Victoria, Tesco Finance, Fortis and Zurich.

But they won’t pay out without proof of purchase, warns Brown, so keeping a record of receipts is essential to ensure any claim is accepted.

And even some of those insurers who do cover music downloads do not pay out for losses caused by computer viruses.

“Never choose an insurance policy just based on the lowest premium for your criteria,” advises Brown. “If you have specific needs, such as cover for music downloads or an unusual item, read the small print before signing up. If it’s not obvious online, make a phone call and ask the question.

“You could have a very expensive and disappointing shock if your claim is rejected and you have to fork out for a replacement or go without.

“But whatever insurance you have, there’s no substitute for making a back up of your music collection and storing it on a separate device somewhere safe.”