What type of loss includes costs such as additional living expenses while a property is being repaired?

The correct answer is B, which represents indirect loss. Indirect loss refers to expenses that are not directly tied to the physical damage of property but arise as a consequence of that damage. In the context of property insurance, when a home is damaged and requires repair, the homeowner may incur additional living expenses—such as hotel bills, restaurant meals, and other costs associated with being displaced from their home. These costs are ongoing and result from the inability to occupy the property during repairs, illustrating how indirect losses manifest as a financial impact due to the primary loss event.

In contrast, direct losses pertain to the actual physical damage or destruction of the property itself, such as the cost to repair the structure or replace damaged items. Immediate loss does not accurately convey costs associated with disruption, such as living expenses during repairs. Collateral loss is generally not a standard term used in insurance contexts related to property or liability coverage. Thus, the concept of indirect loss perfectly encapsulates the nature of additional living expenses incurred while property repair works are underway.