How is the term 'loss' defined in the context of property insurance?

In the context of property insurance, the term 'loss' is defined as damage or detriment to property. This definition highlights the primary focus of property insurance, which is to provide financial protection against specific perils that cause physical harm to the insured property. When a loss occurs, it typically translates to a quantifiable reduction in the property's condition or value due to covered events, such as fire, theft, or natural disasters. Insurers evaluate a claim based on the extent of this damage to determine the amount of compensation owed to the policyholder, reinforcing the importance of accurately assessing loss in the claims process.

The other options do not align with the definition of 'loss' in property insurance. A reduction in market value is related but does not encompass the full scope of 'loss' as it pertains more specifically to the valuation aspect rather than the damage itself. Obligations under a lease and liabilities incurred from transactions refer to legal responsibilities and financial commitments that are unrelated to the damage or loss of property.