Poor grandma. This is exactly why we should always have a backup location for our hard wallets. Even if we don’t anticipate these things, they can still happen. It was not only her house that was lose but she also lost her Bitcoin investment. It’s a tough situation, but it’s a strong reminder of how important it is to have proper backups, and things should be planned ahead.
some people may call you crazy and a little too anxious for nothing but it is always better safe than sorrywe can't predict when or if things like this will ever happen so it is good to plan ahead like you said diversify the coins you are holding some people may find it more dangerous to not have all of their coins by their side at all times but you never know what can happen to you or to your house which could lead to the loss of your wallet do not be too confident and have more than one wallet stored in more than one location and keep backups of your seed phrases or passkeys and such to ensure that whatever happens you can still gain access to your bitcoins
bitcoin will not be loss but your access will be if you do not try to be careful
