Property Insurance FundamentalsPregunta 227 de 474
A covered kitchen fire drives a family into a hotel for six weeks. Which part of that is the indirect loss?
a.The burned cabinets and scorched wall
b.The floor ruined by firefighting water
c.The smoke damage to the family's clothes
d.The hotel bills the family has run up
Explicación
Additional living expense is a consequential loss: the hotel bills are not physical damage, they are money the family spends because the damage made the home unfit to live in. Burned cabinets, smoke-damaged clothing and a water-soaked floor are all direct physical damage, whether the water came from the fire hose or the fire itself.
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