In the scenario where Janie's rental property is damaged due to flooding, what is an indirect loss?

An indirect loss, often referred to as a consequential loss, occurs when an event leads to secondary impacts that are not directly related to the physical damage itself. In the context of Janie's rental property, the loss of a month of rental income represents an indirect loss because it is not related to the initial damage from flooding. Instead, it stems from the consequences of that damage—specifically, the inability to rent out the property while repairs are being made or while the property is uninhabitable.

The other options focus on direct losses related to the physical repair or replacement of items damaged due to flooding. For instance, replacing a sofa or repairing wood floors are direct costs associated with the property itself, while hiring a contractor is directly linked to making the necessary repairs. These costs are reactions to the damage, highlighting that while they are expenses incurred due to the flooding, they do not address the broader economic impact of lost income that results from not being able to lease the property. This distinction between direct and indirect losses is crucial in understanding the impact of flooding and how it affects rental property income.