Louisiana P&C Adjuster Practice Exam

What type of loss occurs when lightning strikes a tree that falls on a house?

1. An indirect loss

2. A direct loss

3. A non-fortuitous loss

4. An uncovered loss

The correct answer is: A direct loss

When lightning strikes a tree, causing it to fall onto a house, this scenario represents a direct loss. A direct loss is defined as damage that occurs as a direct result of an event, in this case, the lightning strike. The impact of the tree on the house is a straightforward consequence of that lightning event. Generally, direct losses refer to tangible damage to property, which can usually be covered by standard property insurance. Understanding the distinctions between other types of losses can help further clarify why this is categorized as a direct loss. Indirect losses, for example, refer to losses that occur as a secondary result of an event, such as loss of income due to business interruption while repairs are made. Non-fortuitous losses describe losses that are expected or intentional, which do not apply in scenarios involving natural events like lightning strikes. Uncovered losses imply that the damages do not fall under the protection of an insurance policy, which is also not the case here, as a lightning strike would typically be covered unless specified otherwise in policy exclusions. Thus, categorizing this damage as a direct loss is accurate and aligns well with insurance principles regarding the coverage of property damage resulting from unexpected natural events.