Florida Subscriber

A

There may be some coverage for the sprinkler system, although not as much as the insured would desire.

There is no coverage for the sprinkler system as permanently installed fixtures or equipment, as coverage for such items is under the building or structure coverage and does not extend to such items not part thereof. If the underground system extends from the building's plumbing it would ordinarily qualify as “building, including permanently installed fixtures.” However, underground pipes are specifically made property not covered under the commercial policy.

The insured's argument that the sprinkler system is personal property used to maintain the premises appears to have merit; however, because a “fixture to the realty” normally cannot be removed without damage to the realty, the sprinkler system would be seen as real, not personal property. Even if considered personal property the exclusion of underground pipes prevails.

Therefore, any damage to the underground pipes is not covered. However, any damage to sprinkler heads or connecting pipes above ground would be covered.