Sainsbury's Home Insurance offers cover for music downloads
UK music lovers have amassed an estimated £1.3 billion worth of digital downloads from online stores such as iTunes and Amazon, according to new research from Sainsbury's Home Insurance. The supermarket bank is, however, warning online shoppers that their collections may well be at risk, with almost three quarters of home insurance policies not covering digital purchases.
Over a third of the adult population (36%) owns downloaded music and the average online music shopper now values their music download collection at around £85, including any purchases made over the Christmas period. While nearly 1 million people (959,101) estimate that they have well over £250 worth of downloads. Yet with only a quarter (24%) of home insurance policies offering any cover at all for these purchases and just 10% covering downloads to the value of £2,000 or more, any loss of computer hard-drive caused by theft or fire could leave people with no recompense. The most avid music lovers out there could find themselves seriously out of pocket as well as without their tunes.
Just 5 per cent of people downloading digital music know for certain that their digital music is covered. Nearly a quarter (23%) are either pretty certain or expect that they wouldn't be covered in the event of loss. 55 per cent of people have no idea what the details of their insurance policy are for this.
Sainsbury's Home Insurance offers cover for digital downloaded media up to the value of £2,000.
Ben Tyte, Sainsbury's Home Insurance Manager, said: "Downloading music has taken off in recent years, but many home insurance policies are lagging behind in terms of covering people for their purchases.
"There may be an assumption from consumers that once they've made a purchase any loss could be recovered from the retailer but most outlets only allow for a single download. The likes of Amazon and iTunes do offer receipts via online accounts so even if a computer was totally destroyed the customer would be able to retrieve these and claim for their loss on their home insurance policy. It's also a good idea to back-up your collection onto another computer as a precautionary measure."
The findings show that men download a far greater value of music than women - the average man owns over £125 worth of downloads on average, compared to less than £40 for women. And the research also reveals that it's not just young people who download music. While more people aged 18-24 own downloaded music than any other age group (58%), even the over 65s are downloading tunes, with 12 per cent having done so.
Industry experts suggest there have been around 120 million legal downloads of singles this year alone(3). The power of online purchasing was clearly demonstrated over the Christmas period when a single only available online, Rage Against the Machine's 'Killing in the Name", toppled the traditional favourite, the X Factor winner's single, to the Christmas number one slot.
Just 28 home insurance policies, equivalent to 10% of the market offer cover for downloads up to the value of £2,000 or more. Sainsbury's Home Insurance is advising all those who have recently purchased music online to check their home insurance policies to ensure they are covered.
About Sainsbury's Home Insurance:
As well as being competitively priced, the bank also offers an extensive range of cover and benefits. This includes:
Unlimited buildings cover
Unlike some home insurers, Sainsbury's Bank does not apply charges for customers paying their premiums monthly
No-claims discount - you may be eligible if you have been claims free for 5 years or more.
No-claims discount protection
Cover for accidental damage - even by pets