The company denied the claim due to an exclusion that states, “We will not pay for loss of or damage to: Building materials and supplies not attached as part of the building or structure, unless held for sale by you, caused by or resulting from theft.”

The term “materials, supplies, and equipment” is not defined in the policy. As such, we believe they should be construed by their common meaning. The exclusion bars coverage for materials and supplies but not equipment. We believe anyone remarking upon these air conditioning units would utilize the term equipment, not materials or supplies. If they were on fire or fell off a truck, an observer not knowing specifically what the items were would almost certainly describe them generically as equipment. Thus we believe the claim should be covered.

Ohio Subscriber

The air conditioning units would not be considered equipment actually used for making additions, alterations, or repairs to a building. An example of equipment used to make alterations or repairs would be a backhoe used to dig the foundation of an addition. The air conditioning units were just equipment waiting to be installed. Yes, we agree that they would be considered equipment, but not yet permanently installed, so not covered under the building coverage. They could be considered business personal property.