The story is described here: http://www.reddit.com/r/litecoin/comments/1umydr/this_is_why_you_should_have_an_offsite_backup_my/
Quote
I had a house fire yesterday morning. It started in the attic and the fire department went in and took care of it. Unfortunately, they had to tear down the celing to get to the fire and hose everything down.
I lost all my servers and mining rig. The usb backups I had in my closet in onther room were also destroyed
I lost all my servers and mining rig. The usb backups I had in my closet in onther room were also destroyed
I set up an LLC and am running my mining business under it. I was able to get business insurance that not only covers all my mining hardware, but covers the lost revenue until the machines are replaced. Pretty nice to have.