What type of loss is incurred by Sandra's family when they must stay in a hotel due to damage from Sam's accident?

The correct choice reflects the nature of the loss that Sandra's family suffers when they are required to stay in a hotel due to damage from Sam's accident. This situation represents an indirect loss, which refers to costs that arise as a consequence of a primary loss or event. In this scenario, the primary loss is likely the damage to their home resulting from the accident, necessitating alternative accommodation.

Indirect losses can include expenses such as temporary housing, additional living costs, and lost income relevant to the disruption caused by an event. The need for a hotel stay arises not from a direct damage to the family but as a result of the damage that rendered their home uninhabitable. This distinction is vital as it helps in understanding insurance coverage that may apply to such additional living expenses, which often fall under indirect losses in homeowner's insurance policies.

In contrast, direct losses would involve damage directly to property, supplemental losses typically refer to additional or unexpected expenses that do not fit traditional definitions, and replacement losses pertain to the costs associated with replacing damaged items. Therefore, recognizing the hotel stay as an indirect loss underscores its nature of being a secondary impact of the initial accident.