The requirement of a physical alteration of the property to trigger property cover, opposed to perils that degrade use without altering matter.
The direct physical loss doctrine conditions indemnity on a physical alteration of the insured property. It let insurers win the pandemic business interruption litigation, then the wildfire debris litigation, held uncovered for want of actual physical loss. Its fragility is that it was forged when perils destroyed things, whereas contemporary perils, smoke, ash, contamination, radiation, corrupted data, degrade use without altering matter. Every victory built on that requirement erodes the perceived value of the product and hastens the moment the state nationalizes the risk.
An appellate court held wildfire debris was not covered, for want of an actual physical loss, requiring a physical alteration of the property to indemnify.
perte physique directe, altération matérielle