What type of losses result from delays in repairing or replacing damaged property?

Delays in repairing or replacing damaged property typically lead to indirect losses, which are losses that result from the consequences of a direct loss rather than from the loss itself. For instance, if a home sustains damage and there is a delay in its repair, the homeowner might experience additional costs such as increased living expenses if they need to stay elsewhere, loss of rental income if the property is a rental, or diminished value of the property during the delay. These situations showcase how indirect losses arise from the impacts of a direct loss, emphasizing the financial repercussions that stem from the time taken to rectify the original damage.

Direct losses, on the other hand, refer to the immediate financial impact resulting directly from an event, such as the cost of repairs needed after a fire. Supplemental losses are not a commonly defined category in insurance terms and do not specifically relate to delays in restoration. Catastrophic losses refer to significant negative financial impacts from large-scale events, which is not limited to delays and may involve various aspects of property damage rather than the nuances of timing in repairs.