TUAW is reporting that Nationwide Insurance will now insure the purchased music files that are on your iPod. Actually, the coverage seems to extend to all kinds of purchased downloads like ringtones, music, and videos. I’d have to see if this insurance was available separately or if it needs to be an add-on to a Nationwide home insurance or renter’s insurance policy — if it has to be added on to an existing policy, I would be worried about making claims that might negatively affect other policy premiums and coverage. It is important to note that if you enroll and pay for this insurance, you will need to prove your original purchase receipt, so save all of those iTunes Music Store receipts in your e-mail.
I think I’m going to stick with my RAID at home with monthly back-ups to Amazon S3.