Are your digital downloads insured?

As Brits swap the cinema for movie downloads and tiny MP3 players replace racks of CDs, digital content in the home is becoming increasingly more valuable, but people may not realise the risk of losing it all according to moneysupermarket.com.

Research from Britain's number one comparison site found the average person has almost £1,200 worth of purchased music, movies and software downloads at home - totalling £46 billion worth of content between the UK's internet users. Almost two million digital hoarders (four per cent) have more than £5,000 worth of digital content stored on their machines, rising to seven per cent of 18-34 year olds.

However, despite its value, just three in 10 of the most popular home insurance policies cover digital content (see table in noted to editors).

Julie Owens, head of home insurance at moneysupermarket.com, said, "Whether its Beyonce or The Beatles, people don't associate the same value to an MP3 player full of music as they do to a wall full of CDs or vinyl, but it is just as - if not more - valuable in terms of money, so people need to ensure they are appropriately insured.

"Should you lose your downloaded content, some insurers will advise you to contact the site you purchased it from, however, the seller won't always agree to let you re-download your purchase so you need to check your policy covers this type of content.

"I recommend checking the small print of your policy to find out what you are covered for and to what value. Being underinsured is also a dangerous position to find yourself in - if in doubt, speak to your insurer to find out whether you need to increase your cover for downloaded material. For Brits with an especially high value of digital content it may be worth considering cover from a specialist provider; Hiscox for example will insure up to £2,500 worth of downloaded material."

The survey also reveals people in Yorkshire and Humber have the most valuable digital content, worth an average £1,400 including almost one in 10 (nine per cent) with over £5,000 worth.