Are Your Digital Music Files Insured?

Are Your Digital Music Files Insured?
Hold up! Before you upload all of your music to your computer and sell all your CDs ask yourself: Can I insure the music on my computer? What about all of the songs I bought from iTunes?

While digital music sales are sky-rocketing and CD sales are plummeting, NME.com has reported that your MP3s may not be as valuable as your CD or vinyl collection. A study by UK magazine Computing Which? has revealed that most insurance companies will not offer any compensation for lost digital music.

So, if your iPod is on the fritz, or your laptop drops dead, whatever you lose could be gone. For good.

Out of 46 insurance companies, only 22 would offer any coverage on digital music, though only against loss from a fire, theft or flood. Caps have also been instated with maximums reaching only "£1,000 or £2,000 on claims for digital downloads."