Our advice

• If you've got a sizeable collection of downloaded music or ringtones, get an email or letter from your insurer to spell out what's covered.
  
  
• In case you ever need to prove you've paid good money for legally downloaded software or data, print a receipt and file it at the time you do the download.
  
  
• Make it a habit to back up downloaded data and software to a CD, DVD or memory stick (flash drive) immediately. And store these "off-site".
  
  
• Check whether your policy covers software at replacement or indemnity (depreciated) value.
  
  
• Use a back-up program such as those that come automatically with Microsoft XP, Vista and Mac OS X operating systems.
  
  
• When you download iTunes music, use the site's back-up facility.
  
  
• Many insurers provide the full wording of their policies online. Make sure you read it carefully. And don't presume your expensive items are covered.
  
  
• Write or email your insurer and ask when digital downloads will be covered by standard contents-insurance policies. You could also write to the Insurance Council of New Zealand.
  
  
• If you can't burn to disk or you don't know how to, go to an online backup service such as backitup.co.nz (250mb of online storage for $120 a year) or SOSOnlinebackup.com (1gigabyte of online storage for $22.40 per year).

Ex-what!

You've lost your downloaded music and your claim's been turned down? Ask the insurer to pay you "ex-gratia" - out of the goodness of the company's heart. The company pays out but doesn't accept legal liability for the claim. Several insurers said they would consider such a claim.

For example, Vero said in an email: "Each case would be decided on its unique set of circumstances ... though the policy excludes such a loss." Vero now tells us this isn't "as easy as just asking", although in this case we think it should be.

More information

• Insurance Council of New Zealand www.icnz.org.nz
• Insurance and Savings Ombudsman www.iombudsman.org.nz

More from consumer.org.nz

• House and contents insurance - how it works, making a claim and recommendations