Indirect losses include which example?

Indirect losses include which example?

• A. Additional living expenses while the home is repaired
• B. Damage to the building
• C. Replacement of contents
• D. Fire cleanup costs

Answer: (A)

Indirect losses are costs that arise because a covered peril damaged your property and you can’t use it normally. They’re the extra expenses needed to maintain your living standard while the home is being repaired. Additional living expenses fits this idea, since it covers living costs—like lodging and meals—during the displacement. The other choices describe direct losses: damage to the building, replacement of contents, and fire cleanup costs are costs to repair or replace the property itself, not the extra living expenses caused by the loss of use.

Indirect losses are costs that arise because a covered peril damaged your property and you can’t use it normally. They’re the extra expenses needed to maintain your living standard while the home is being repaired. Additional living expenses fits this idea, since it covers living costs—like lodging and meals—during the displacement. The other choices describe direct losses: damage to the building, replacement of contents, and fire cleanup costs are costs to repair or replace the property itself, not the extra living expenses caused by the loss of use.