Mississippi Property & Casualty Practice Exam

The term that defines 'loss of use of property' is property damage. This refers to situations where an individual is unable to use their property due to damage that has occurred, resulting in a loss of its utility or functional value. Property damage encompasses not only the physical harm to the property itself but also captures the impacts associated with being unable to use that property as intended. In the context of insurance, property damage typically includes both the direct cost associated with repairing or replacing the damaged property and any consequential losses experienced due to that damage, such as lost rental income for a property owner whose rental units are uninhabitable. It's important to recognize that while other terms—including compensatory damages, liability coverage, and bodily injury—relate to various aspects of insurance and legal claims, they do not specifically address the concept of loss of use as it pertains to property in the same way that property damage does.