AfterDawn: News

Many insurers don't cover 'digital possessions'

With the growing success of services such as iTunes, more consumers are turning away from record stores and buying their music online instead. However, it can be a costly habit when your equipment is stolen or somehow destroyed. Buying all your digital downloads again could be very expensive and chances are, even if you have insurance, your "digital possessions" may not be covered at all.

Of course, it always makes sense to make backups of your digital data, but an event such as a house fire would most likely destroy the backups too. For many users, a digital music collection might be the lowest priority after losing many possessions in a house fire, but since some collections are hundreds or thousands of tracks long, it helps to have an insurer who definitely covers them.



A UK unofficial consumer watchdog, Which?, recently released a report that showed out of 46 insurers, less than half covered digital downloads in their policies. It is believed that up to 24% of music downloaders have had their entire digital music collections lost one way or another. Amongst the companies that do insure digital downloads, there are some differences.

For example, Churchill Insurance covers up to £1000 of downloads in addition to the cost of repairing the host computer whereas Privilege Insurance will cover up to any value of digital downloads. However, whilst Churchill will take download claims "in good faith", Privilege demands receipts or some other form of proof of ownership of the music downloads.

Any offer is better than none though, and many insurance companies are slow to adapt to how consumers are changing their digital media buying habits. Zurich and JS Insurance are two expamples of companies that don't cover digital downloads at all.

Source:
Reg Hardware

Written by: James Delahunty @ 7 Jul 2007 17:11

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• 12 comments

• faqman98

  as much as i support this change does any one else agree with me when i say that this is just fraud waiting to happen cuz everyone knows that more than a few people upon reading this will get a policy, backup all of their stuff then have their hardrive "accidentally set next to a industrial magnet" and proceed to reep the $2000 compensation for their music collection

  7.7.2007 18:44 #1

• WierdName

  There probably will be fraud but it's still nice to know someone will actually give insurance on digital files.

  7.7.2007 21:51 #2

• sssharp

  I dont have an ipod, but apple (or others) should let you redownload the same music if the ipod is stolen or damaged. If you paid shouldnt they have a record of what you own? I dont remember having any insurance on scratched or damaged cds to begin with.

  8.7.2007 00:55 #3

• ZippyDSM

  the WII's VC has a recite system,your account keeps a record of your purchases so you can redownlaod it,this dose not hurt profit as much as the holy bottom line thats fed into CEO pockets...

  8.7.2007 06:59 #4

• club42

  Sony connect lets you re download your collection as many times as you want. If they all did that there wouldnt be a problem. Sony of course puts a limit on how many times you can burn a download though.

  8.7.2007 08:10 #5

• duckNrun

  This is just another example of properly securing valuable possessions. My important papers are in locked fire boxes, most important stuff is in deposit boxes. Back up your hard drive(s) and place the backed up drive(s) in a secure setting offsite. So even if a fire takes down your house you still have your IMPORTANT papers and valuables backed up elsewhere.
  
  For those who can't or don't want to use a bank, the next best thing is a friend's house. If his place burns down chances are yours is still ok (and hence you can remake your back ups from the originals) and vice-versa.
  
  My friend has a locked fire-box of mine with certified copies of what would be required to prove my identity and get another driver's license, a copy of my will, title to my car etc and I have the same thing in a locked fire box here in my closet.
  
  Backing up your data isn't just for PC's you know!

  8.7.2007 22:46 #6

• ZippyDSM

  Originally posted by duckNrun:This is just another example of properly securing valuable possessions. My important papers are in locked fire boxes, most important stuff is in deposit boxes. Back up your hard drive(s) and place the backed up drive(s) in a secure setting offsite. So even if a fire takes down your house you still have your IMPORTANT papers and valuables backed up elsewhere.
  
  For those who can't or don't want to use a bank, the next best thing is a friend's house. If his place burns down chances are yours is still ok (and hence you can remake your back ups from the originals) and vice-versa.
  
  My friend has a locked fire-box of mine with certified copies of what would be required to prove my identity and get another driver's license, a copy of my will, title to my car etc and I have the same thing in a locked fire box here in my closet.
  
  Backing up your data isn't just for PC's you know!
  -------------------
  YA but the media mafia is tryign to stop you from "backing up" on many levels,some more than others, I guess currently most left you have some form of re get on your paid downloads some don't however.

  9.7.2007 03:30 #7

• duckNrun

  We're not talking digital as in CD's here, we're talking digital as in music/movies/software on my hard drive bought from iTunes or wherever (or so that's how I took the article). Once a certain peice of data is on MY hard drive making a back up is pretty easy. Worse case scenario I just make an image of my hard drive onto another hard drive. The supposed DRM'd files may only work while that backup drive is in MY pc (or an authorized PC) but the idea isn't to give my friend copies of my stuff for HIS use as much as to insure that if my house burns down he's got a copy waiting for me.
  
  
  As a side thought based upon thoughts of the RIAA: If he wanted to periodically check the integrity of my data to insure that my music, games, movies and what not were still uncorrupted by running them through an audio/video analyzer such as a stereo and monitor then that's a service he's providing me and not him stealing anything from the RIAA or MPAA or whoever assuming that he doesn't make himself a copy that is(lol-- this last thought is a different topic all together I know)

  9.7.2007 05:48 #8

• ZippyDSM

  duckNrun
  thats not what I meant some distro sites let you download something only once and then burn that only once things like that are one shot deals,thankfully they are less than half of all digi distro but its enough to worry even if you can make unlimited backups but you get only 1 download.

  9.7.2007 05:54 #9

• duckNrun

  oh my bad... sorry late, no sleep.

  9.7.2007 12:27 #10

• ZippyDSM

  Originally posted by duckNrun:oh my bad... sorry late, no sleep.
  funny the way my brain dose grammar being half unconsuous should make it easier to udnerstand 0-o
  LOL
  

  
  
  FIGHT THE M.A.F.I.A.A.
  

  9.7.2007 12:39 #11

• borhan9

  All this at the end of the day if you need to insure it u can do so under content if i am not mistaken. What gets to me is its material things it can be replaced but life is priceless.

  15.7.2007 04:38 #12