What is defined as a direct loss?

A direct loss is defined as damage or loss that occurs directly from an incident affecting property, without intermediary effects. In the context of property insurance, this means when an event causes immediate damage to the insured property, such as a fire destroying a building or a tree falling on a car.

This definition emphasizes the nature of the loss as being straightforward and directly connected to the cause of the damage. Therefore, identifying loss stemming specifically from property damage accurately captures the essence of what constitutes a direct loss, distinguishing it from other types of losses that may involve additional factors, such as legal actions or time delays, which are related but not directly caused by the initial property damage.