Outdoor Signs and Outdoor Fixtures Covered as Commercial Property?

The commercial property coverage form (CP 00 10) insures outdoor fixtures but excludes outdoor signs, except for signs that are attached to buildings. We have an insured who sustained substantial windstorm damage due to a tornado. The insured's sign was attached to a large brick and steel pylon structure at the entrance to the insured's parking lot. The sign and the pylon structure were both completely destroyed by the tornado.

We are assuming that the sign would not be covered, but is the pylon structure? We are not sure if the pylon is considered part of the sign and thus, excluded from coverage, or whether it is an outdoor structure. What do you think?

Virginia Subscriber

Signs not attached to buildings are considered as property not covered under CP 00 10. There is some coverage for signs under the coverage extensions part of the policy, but that coverage does not include loss due to wind. So, you are correct that the sign is not covered. As for the pylon, that should be covered as an outdoor fixture. The exclusion of coverage for signs simply lists “signs”; it does not say “signs and signposts or pylons.” So, since exclusions have to be interpreted narrowly and the insured is entitled to the benefit of any reasonable doubt, the pylon would not be considered part of the sign, but as an outdoor fixture that is covered property.

 

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