> if anything happened to my trusty server, all my files would potentially be gone
This is what a good backup solution is for.
While Hetzner's product and other hosted NextCloud instances come with some protection baked in I would still strongly suggest an off-service backup rather than keeping all your eggs in one basket.
(I'm assuming here that NextCloud is being used as the primary storage, rather than a backup location for other storage, if everything else is elsewhere already then the need for an extra full backup solution is reduced)