What is an immediate consequence resulting from a covered peril known as?

The term that defines an immediate consequence resulting from a covered peril is a direct loss. A direct loss refers specifically to the damages or destruction that occurs instantly because of an insured event, such as a fire, flood, or theft, that is explicitly covered under a policy. For example, if a fire damages a building, the cost to repair that building would be categorized as a direct loss because it is the immediate result of that peril.

In insurance terminology, differentiating between types of losses is crucial for understanding coverage and claims. Secondary losses, indirect losses, and subsequent losses pertain to longer-term impacts or additional costs that an insured party might experience as a result of the primary event. However, direct loss specifically addresses the initial impact, providing clarity in coverage definitions and claim processing.