Which of the following best describes direct loss?

Direct loss is best described as physical damage that occurs as a direct result of a covered peril. This means that when an event such as a fire, flood, or theft occurs, the immediate damage or destruction to property is considered a direct loss. This type of loss is clear and measurable, as it pertains specifically to the tangible damage experienced rather than any secondary effects that might arise from the damage.

In contrast, other options refer to indirect losses or consequences. For instance, income loss during repairs or long-term business interruptions arise as secondary effects of a peril but do not represent the physical damage itself. These types of losses, while significant in their impact, are classified differently within insurance terminology, focusing more on economic repercussions rather than the direct impact to the property itself. Thus, B accurately captures the essence of what constitutes a direct loss in an insurance context.