That's only a partial answer I guess, the question could easily be flipped around and say you're on a vacation and your house burns down destroying all your physical possessions (or floods, etc).
Basically, what would you do if everything you own (in every sense of the word) is taken from you? Your digital items, your physical possessions, your identity, your bank accounts, your passwords.
There's some who believe in the nomad life for that very reason. Have no possessions and you have nothing to tie / weigh you down. Everything you own is a weight holding you back.
I've personally experienced destructive flooding to where $10,000s of possessions were destroyed, so in my experience, losing physical items is more likely than losing digital ones, or at least carries a bigger penalty to it. Digital ones are easy enough to replace for the most part. Outside unique/super rare digital things (or things like personal photos/videos).
That sucks, its a scary thing, glad you survived, but it sucks loosing what you have . I live on a river so that thought of flooding always looms in my mind. Of course my driveway and car is 35-40ft above the river level, next to a cliff face going into the water and my house is another 10-15ft above that, but still.
I had to experience loss of items back in 1999/2000. I was in my 20s and my ex friend/roommate was getting into heroin and I kicked him out after he almost got me kicked out of my apartment at the time due to him breaking into the building next door and getting caught when i was at work. He got out of jail and broke into my apartment when I was at work. My entire cd, vhs collection. A nes, snes, genesis, and ps1 with hundreds of games (some of which are worth 100s now, like black label jrpgs), all taken... AD&D books, gone, my tv, and stereo, gone. It was insane. i never did replace all of the cds, and movies I just recently replaced after 2 decades, but the games and systems were gone. Dude was on the run skipping bail, I wasn't finding him. He probably pawned it all off. I had to swallow my pride and face facts. Buy new shit that was needed and let go of the rest.
Luckily today most of that is emulatable, still bothers me to this day. Whats crazy is the dude left the US and moved to Brazil to be a pastor (his dad was one), and still hasn't appologized for any of it or admit it (found him on facebook a few years back)
Some digital stuff is impossible to replace as it gets delisted. Some you can buy phsyical, but those games that do get expensive. i just recently bought silent hill downpour for $50 used. A game that was on xbox marketplace but got delisted. Mortal kombat 9 should be a few bucks, no it was $30, another delisted game.
I see the benefit of not having stuff weigh you down, but only if you are able to travel. If staying in the same location, may as well collect. I won't rebuild my ps1, nes , snes collections, but started new ones. Dvds, guitars, physical games starting in ps2/gc/xb era -> ps3/360/wii gen.