What characterizes an indirect loss?

An indirect loss refers to a financial consequence that results from a direct loss, rather than being a direct result of damage to the property itself. In this case, the correct choice identifies the loss incurred when one cannot utilize the property due to an event that causes damage. This could involve lost income from a business that has to close because of property damage, or additional costs incurred in finding alternative accommodations after a home is damaged.

The other options do not capture the essence of an indirect loss. Direct damage to property represents a direct loss because it refers to the immediate harm to the asset itself. Loss covered under policy limits pertains to the scope and extent of the coverage and does not specifically relate to the concept of indirect losses. Lastly, a loss caused by a single event, while it may lead to both direct and indirect losses, does not inherently define the nature of an indirect loss. Therefore, the characterization of an indirect loss as one stemming from the inability to utilize property due to direct damage provides clarity on its definition and implications in insurance contexts.