Which type of damage is typically not covered by property insurance policies?

In property insurance policies, indirect loss typically refers to any loss that occurs as a consequence of a direct loss, rather than a loss that happens directly to property. While a property insurance policy may cover direct losses, such as damage to the physical structure of a home due to a fire, it generally does not extend to losses that arise indirectly from that damage, like loss of rental income or business interruption caused by the event.

Direct losses are related to the actual damage or destruction of property, and accidental losses, which occur unexpectedly and unintentionally, can be covered. Intentional losses, on the other hand, are specifically excluded because they result from deliberate actions of the insured, which is contrary to the intent of risk transfer in insurance. Thus, while the other categories of losses can have some aspect of coverage, indirect losses are most often left uncovered in a standard property insurance policy. This distinction is essential for understanding the limits of coverage and what types of financial impacts a policyholder might need to address separately.