Our insured has ISO commercial property form CP 00 10 10 00 with open perils causes of loss. There is a sprinkler system in the yard which has pipes, underground. The sprinkler heads extend about a quarter of an inch above ground.

A windstorm toppled a concrete light pole, which as it fell, uprooted the sprinkler pipes, damaging the sprinkler system. We believe the damage to the sprinkler system is not covered, as underground pipes are specifically property not covered. The insured is arguing that the loss is covered, as a permanently installed fixture or equipment, or as personal property used to maintain the premises.

Who is correct?

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