What is the term used to describe physical harm to tangible property caused by a covered peril?

The term that accurately describes physical harm to tangible property caused by a covered peril is "Direct loss." This concept is fundamental in insurance as it refers to the immediate damage or destruction of property resulting from events such as fire, theft, or storm damage, which are typically covered under property insurance policies. Direct loss means that there is a clear and direct correlation between the insured peril and the resulting damage to the property.

In the context of this terminology, it is important to differentiate direct loss from other types of losses. Indirect loss relates to the consequential losses that occur as a result of the direct loss, such as loss of business income due to a property being unusable after damage. Incidental loss refers to minor or secondary losses that are not the main focus of the claim. Permanent loss denotes a situation where a property is lost forever, which may not necessarily relate directly to the immediate physical damage assessed under a property insurance policy. Understanding these distinctions is crucial for effectively managing claims and ensuring proper coverage.