Really important documents are paper and stored in a filing cabinet into labeled folders. Every so often we go through these and discard the papers we no longer need (old tax records beyond 7 years, utility bills more than 6 months old, etc). If our house burns down or floods badly, we'll potentially lose these documents, and that's a risk we're willing to accept. Pretty much all of these documents are actually replaceable with effort, time, and a little money. I can get new notarized copies of birth certificates, old tax documents, will, passports, etc if I really need to but it would be quite annoying. The risk of losing them and the annoyance even each other out, it's a very small risk. If I die, no one needs to know how to use a computer in order to access my will, taxes, etc.
Important digital files are all on our family computer which is backed up to a cloud service which will mail me a disk to do a restore if needed. This includes all our photos and videos from since we've had digital cameras. If both my wife and I both die, no one will have any clue how to deal with this and that's OK.
Photos we really like are printed and in photo albums organized by date. We'll lose these in a house fire and that's a risk we're willing to accept. The ability to easily pull a physical album and see pictures from a past time grouped together and curated is something we really like.