I-pod insurance

With the iPod generation in full swing millions of music lovers are replacing their CD collections with downloads worth hundreds of pounds. According to research by a leading insurer (Privilege) the average download collection is worth £257.

But what happens if you lose your entire music collection if your computer or iPod is destroyed in a fire or flood or is stolen? While home contents insurance policies would cover your CD, tape or record collection, you should not assume that it will cover your downloaded music collection.

Some home contents insurers offer cover not only for the gadget on which you store your music but also for downloads held on them. While this download cover is included as standard by some insurers, others will offer this cover as an additional product. Policies will cover your collection if it has been lost or damaged as a result of fire or flood or stolen but not if it is lost as a result of accidental deletion or a virus. You should check whether your insurer limits the amount of cover they provide. If you have a very valuable collection make sure you let your insurer know and see what rules they have in place for making claims.

It is worth checking your insurer's terms and conditions carefully as some will not cover music that has been lost from a damaged or stolen iPod if you still have a back up on your computer. Most insurers will only cover 'paid for' downloads so any music you have from friends collections would be excluded.

When it comes to making a claim most insurers will ask you to prove the value of your music downloads. You should therefore keep a record of any electronic receipts you receive. Remember to keep a hard copy of your receipts in case your computer is stolen. Print them off or send them to an online email account. Credit card statements can also be accepted as proof of purchase.

The best advice is to back up your music collection on an external hard drive so that you always have access to your music. Keep this in a safe place and remember to update it.