What a great ending eh, you've got her back. Sorted.

My bank offer free mobile phone insurance against my account. All i do is give them my IMEI and its insured from there. Agreed data loss is something insurance cannot cover but it will be £500 or so less mones outve my pocket if insured.

On the data front if the finder of the device was to find it powered down, even if fully pasworded up to reboot, Someone could easily plug a mini usb in, hook up to a pc and check lots of stuff out. Switch your phone off and try it if you aint aware already.

Makes you think twice what data to have on the device. Especially anything that could be relative to you identity.

Anyway glad you found.