Coverage Contract [HUD] Law and Legal Definition

Pursuant to 24 CFR 203.200 [Title 24 Housing and Urban Development; Subtitle B Regulations Relating to Housing and Urban Development; Chapter II Office of Assistant Secretary for Housing Federal Housing Commissioner, Department of Housing and Urban Development; Subchapter B Mortgage and Loan Insurance Programs under National Housing Act and Other Authorities; Part 203 Single Family Mortgage Insurance; Subpart A Eligibility Requirements and Underwriting Procedures; Insured Ten-Year Protection Plans (Plan)], the term Coverage Contract means “a warranty certificate, insurance policy, or other document of similar purpose (including any endorsements), delivered to the homeowner at the time of closing or settlement which is issued by a State, a builder, a warranty company, or an insurance company and which defines the terms and conditions under which a Plan will provide warranty coverage of the covered property.”