West Virginia Adjusters Practice Exam

During a storm, lightning strikes a tree in Norman's backyard, causing it to fall on his house and damage his roof. In this case, Norman's fallen tree is considered:

1. a direct loss.

2. an indirect loss.

3. a consequential loss.

4. a covered peril.

The correct answer is: a direct loss.

When a tree falls on Norman's house and damages his roof, it is considered a direct loss because the damage is directly caused by the lightning strike. Option B, an indirect loss, refers to a loss that is caused by the initial event, but is not directly impacted by it. Option C, a consequential loss, typically refers to financial losses that result from the direct loss. Option D, a covered peril, refers to a specific event that is covered by an insurance policy. In this case, the lightning strike would be considered a covered peril, but the damage to Norman's house would be classified as a direct loss.