Music fans urged to keep receipts of online purchases

Music fans looking to benefit from the launch of a cut-price online music downloading service have been urged to make sure their digital collection is covered under their home insurance policy.

HMV.com is now offering tracks at 40p a time - nearly half the cost of rival iTunes - which means music lovers will be able to get double the music for their money.

But music and movie fans could be risking their collection if their home insurance does not cover them if their computer or laptop is damaged, lost or stolen, Virgin Money warns.

Not all household and contents insurance will pay out for downloaded tracks - some say downloads should count as data files and therefore do not cover them while others classify them as personal possessions and do.

iTunes reached its 10 billionth sale this year and the evidence suggests that online downloads are likely to grow rapidly over the coming years. CD sales decreased by close to 10% during the first half of 2010, while online downloads grew by 34% in the same time period.

Grant Bather, spokesman at Virgin Money, said: "Download sales are growing in popularity all the time but many people neglect to back-up their collection and ensure their music is covered.

"While people may think to include their CDs in their insurance policies, downloaded files are often ignored. If your computer or laptop is lost, stolen or damaged a lot of information and film and music downloads could be lost, at considerable expense unless you have download cover."

With the Virgin Money Home and Contents Cover, holders are able to claim on any downloads that they have receipts for up to a total of £3,000. If the music is lost or stolen they can claim as if they're CDs. Users who download music and film should print off and keep all receipts safe.

Contents insurance also covers home office equipment, including a computer, up to £5,000, while laptops, if taken out of the property, can be covered by the additional Personal Possessions cover.