What is an example of an indirect loss?

An indirect loss refers to the financial impact that results from a direct loss, rather than the physical loss of property itself. In the context of the given options, the example of an insured staying in a hotel due to fire damage represents an indirect loss. This situation involves additional expenses that arise because of a direct loss (the fire damage) to the insured property.

In this case, the direct loss would be the damage to the home caused by the fire, while the indirect loss encompasses the costs incurred by having to stay in a hotel, which may include lodging expenses and any potential disruption to the insured's daily life. This reflects how a primary event (the fire) can lead to subsequent financial ramifications that are not related to the actual property damage but are still significant to the insured individual.

Other choices represent direct losses. For instance, losing bedroom furniture in a fire is a direct loss because it involves the immediate loss of a physical asset. Similarly, property taken during a burglary is a straightforward case of theft, directly resulting in loss. A tornado damaging a home by taking off the roof is also a direct loss, as it pertains to physical damage inflicted by a natural disaster. These situations do not involve ongoing or secondary financial impacts from the initial incident.