Outdoor Signs

Q

Pursuant to the commercial property policy, CP 00 10 10 91, building coverage is written to include outdoor fixtures. Signs, other than those which are attached to the building are specifically excluded.

We have an insured who sustained substantial damage resulting from a tornado. The subject risk is a strip shopping center. At the entrance to the parking lot there is a large brick and steel pylon structure to which the shopping center's sign was attached. The entire structure was destroyed by the tornado.

In accordance with the exclusionary language, the sign would not be covered. My question is, would the pylon be subject to this exclusion, or would it be covered as an “outdoor fixture?”

Virginia Subscriber

A

Exclusions are interpreted narrowly, unless the insurer prepares the contract to expand the usual, common meaning of a term. Only “signs” is the excluded term here and we know of no reason that should be expanded to mean “sign plus signpost.” The pylon is covered.

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