What are the best/most cost-effective solutions for insuring an i-pod agains loss, damage and theft?

I seem to remember someone posted on another thread that you can't get insurance against water damage. Why is this? If you can insure mobile phones against being dropped in the toilet, why not i-pods - which are often cheaper?

The most cost effective would be to include it on your household contents insurance because for the value of it - as long as you have adequate cover in the first place - it won't cost you anything since it is unlikely to exceed any single article limit so won't need to be specified. Of course in the event of a claim it might depend on your excess as to how worthwhile it is claiming once you also take into account any loss of no claims discount/increase in premium. Insuring it individually will almost certainly cost more based on the value but might have better terms in the event of a claim because the policy is based on only that item and the possibility you might claims

household by a mile.

Would this cover accidental damage and theft outside the home etc though? Would you have to mention you wanted this cover to the insurer?

Incidentally I don't have household insurance. (I rent and most of my valuable stuff is in storage).

Where would I find a good individual deal? Could this be done from a broker, or a reputable company?