Question

Furniture, which is destroyed when a building burns down, is an example of what kind of loss?

A. direct
B. indirect
C. consequential
D. residual

Answer 1

Furniture destroyed in a fire is an example of a direct loss, which is the immediate physical damage to property caused by a covered peril. This loss is separate from other sustainability practices like converting sawdust into electricity.

Step-by-step explanation:

The destruction of furniture in a building fire represents a direct loss. This type of loss refers to the physical damage or destruction of property that occurs as a result of a covered peril, such as a fire. In this case, the furniture itself, which is directly damaged in the blaze, represents a palpable and immediate loss. As we examine historical events, we can see that the aftermath of such destruction has often led to improved building practices, like the transition from wood to brick or steel structures, aimed at mitigating future risks. This is unrelated to using by-products, such as burning sawdust from lumber production for electricity, which is classified as a form of waste-to-energy practice and not a type of loss.