An additional loss that results from a direct loss of property is known as what?

The term "indirect loss" refers to the financial impact that occurs as a consequence of a direct loss to property. When a direct loss happens—such as damage to a building due to fire—the property owner may face further financial difficulties that stem from that direct loss, like loss of rental income or increased expenses related to property repair.

Indirect losses are often not immediately apparent, as they manifest in the form of additional costs that arise due to the primary loss event. For example, if a business's location is damaged by a natural disaster, the direct loss would be the physical damage to the property, while the indirect loss would encompass things like lost revenue from halted operations, extra expenses to relocate, or even potential lower customer foot traffic during the rebuilding phase.

In contrast, direct loss pertains strictly to the immediate damage sustained to the property itself. Subrogation loss is not a recognized type of property loss and generally relates to the legal right of an insurer to pursue a third party responsible for a loss after compensating the insured. Contingent loss is typically associated with potential future losses that depend on specific conditions arising, rather than being an immediate consequence of a direct loss.