Let’s say I found a website legally selling downloads of music, movies, pictures, software…, but they had no system for redownloading, for free, if you lose your file. If your hard drive crashes, and you didn’t have a backup, you’re SOL.
So I decide to full up a computer with music from this site, and I spend $10k doing it. Then my house burns down.
If I’d had $10k worth of CDs, my homeowners insurance would cover it. How do standard homeowner policies handle digital versions?
Generally - no cover - at least in the UK.
You are supposed to act as a “prudent uninsured” anyway which would usually include backing up data - and if essential data keeping a backed up copy off-site. No need to rely on insurance then.
I believe you can buy specific extensions for “electronic records” but I have only met that in commercial insurance not householders.
But why should digital possessions be treated differently than physical ones? No one expects me to keep all of my books in a fireproof vault, and only read photocopies of them. I don’t have to keep my paintings hidden away, and hang posters of the same piece on my wall. Silver in a safe and use plastic forks?
Why should a $10 CD be treated differently than a $10 download of the same music?
Because backing up digital media to the cloud is so cheap and easy that it is your insurance policy. Also, culture moves slower than technology. Insurance law, doubly so. But definitely check with your insurance company. And your hypothetical legal digital media source would probably be happy to help you restore your collection after a disaster. www. warezmp3 .ru, probably not so much.
But this IS EXPECTED of certain valuable papers. You are supposed to keep them in your safety deposit box, and only have copies at home.