[Introduction to Risk and Insurance – Perils & Loss Types]What best describes a direct loss?

Adirect lossis damage that resultsimmediately and directlyfrom the action of an insured peril. For example, fire burning a building, wind damaging a roof, or theft taking merchandise. The loss must be theproximate (dominant) causeand must flow directly from the peril named or covered in the policy.

Option A is incorrect because direct loss refers to a peril’s action, not to who caused it.

Option C describes extensions of coverage, not direct losses.

Option D describes anindirect (consequential) loss, such as business interruption resulting from a fire—not the physical damage itself.

Therefore, the correct definition of a direct loss isB: Damage to property by the direct action of an insured peril.