What type of loss refers to the inability to use damaged property?

The type of loss that refers to the inability to use damaged property is classified as an indirect loss. Indirect losses, also known as consequential losses, arise as a result of the inability to use the property that has been damaged, leading to additional expenses or loss of income. For example, if a person's vehicle is damaged in an accident and is inoperable, the owner may face costs related to renting a car or may lose income if they rely on that vehicle for their business operations.

Direct loss, in contrast, refers specifically to the actual physical damage to the property—such as the repair costs for the vehicle itself. Partial loss and total loss terms describe the extent of the damage to the property: a partial loss indicates some damage where the property can still be used, while a total loss means that the property is completely destroyed or unusable. Thus, the correct classification of the loss due to the inability to use the property is indeed an indirect loss.