The insurers' arguments

Some of the insurers we spoke to supplied disingenuous answers. Not, we believe, because they were trying to be clever but simply because they hadn't given the issue sufficient thought.

Two devices

Some insurers argue that the issue is a storm in a teacup, because music and ringtones at least are usually kept on two devices, such as the player in the case of music and the original download stored on the owner's computer.

Reality check

It's not inconceivable that someone could lose both their player and computer (especially if it's a laptop) at once, through theft or fire. What's more, other data that's been legally paid for (such as a movie) is often stored only on the same computer it's downloaded on.

Download it again

One insurer told us it wouldn't cover music downloads because the music can be downloaded again if a person loses the devices it's held on.

Reality check

This is a common misconception. Like with anything else you lose, having a receipt won't necessarily allow you to get a replacement. That's from Fiona Martin, public relations manager for Apple. She adds: "We would always ask our customers to contact Apple directly should anything happen to their iTunes library or any Apple offering they have purchased. This will ensure that every opportunity can be made to resolve any concerns a customer may have."

Back it up when you buy

Several insurers whose contents insurance policies exclude data downloads told us that people should back up all of their music and other downloads on to CD or DVD as soon as they buy it.

Reality check

This is beyond the technical capabilities of many of us. Banks have realised recently - in the context of internet banking - that customers can't be expected to be tech savvy.

Prove you had it

Then there's the claim that, even if data downloads were covered by insurance policies, people would have to prove that they'd downloaded the data.

Reality check

Few people keep receipts for all the books or CDs on their shelves. Why should the burden of proof be greater for data downloads?

Attractive to burglars

Some insurers maintain that customers should pay additional premiums to have their digital music covered. John Whitta, policy product manager at Tower, said his company's experience shows that computers are more attractive to burglars than CDs.

Reality check

But that would be true of many household items - some are more attractive to burglars than others. Are insurers going to increase your premium because you own a widescreen high definition TV?

Illegal downloads

Insurance companies also claim the levels of illegal downloading make it impossible for them to insure any downloaded data: "There is currently so much illegal downloading occurring, that the potential for fraudulent claims in the area of downloads just adds to insurers' concerns about providing cover at this time" said Richard Godman, chairman of the personal lines committee for the Insurance Council of New Zealand.

Reality check

Insurers could solve this by setting coverage limits. But if people can produce receipts or other evidence that they have legally owned goods, we think this viewpoint doesn't hold. Online purchasers have credit card or PayPal statements to prove they've legally downloaded music, ringtones, or movies.