DEFINITION of 'Manifestation Trigger'

An event that causes a policyholder’s personal injury or property insurance coverage to kick in based on the date when harm first became known. The manifestation trigger is one of four triggers of coverage used to determine whether an insurance claim will be paid and by whom based on when the policyholder noticed the problem.

BREAKING DOWN 'Manifestation Trigger'

For example, the manifestation trigger might be used in a case of property damage. The homeowner’s discovery of the damage would be the event that creates the ability to file an insurance claim, regardless of when the homeowner thinks the damage began. The policy in force at the time of the discovery is the one that should pay the claim.

One of the complicated things about insurance claims is that it could also be argued that insurance coverage should apply as soon as the damage first occurred, regardless of when it was first discovered. The problem is that the homeowner can only speculate as to when the damage may have first begun.

Another complication is that a homeowner might have had one insurance policy when the damage theoretically began and a different policy when the damage was discovered. The rule about when coverage kicks in will decide which policy applies to the claim. That, in turn, may affect how much the policyholder receives for the claim, since they may have had different deductibles and coverage amounts under the different policies. This was an issue in a Texas case where a couple began noticing a strange smell in the home early one year, and it wasn’t until the following year that they actually discovered it was mold. Because the manifestation trigger applied, the insurance policy that was in force when they discovered the mold was the one responsible for paying the claim.

The three other types of triggers are the exposure trigger, continuous trigger and injury-in-fact trigger. The exposure trigger uses the date when an injured party first came into harmful contact. The continuous trigger applies when damage or injury may have more than one trigger that occurs at numerous points in time, while the injury-in-fact trigger applies on the date an injury or damage takes place.

Trigger type matters because it is often difficult to determine when harm occurred and when liability begins, which affects the amount of money an employer, insurance company or other entity may have to pay out.

RELATED TERMS
  1. Coverage Trigger

    An event that must occur in order for a liability policy to apply ...
  2. Injury-In-Fact Trigger

    A coverage trigger theory that states that policy coverage activates ...
  3. Exposure Trigger

    An event that causes a policyholder’s insurance coverage to kick ...
  4. Continuous Injury Trigger

    An insurance policy coverage theory in which any policy that ...
  5. Trade Trigger

    Any type of event that triggers a securities trade. A trade trigger ...
  6. Homeowner's Insurance

    Homeowner's insurance is a form of property insurance that covers ...
Related Articles
  1. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  2. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  3. Insurance

    Understanding Insurance Claims

    An insurance claim is a formal request made to an insurance company that asks for a payment based on the terms of the policy.
  4. Insurance

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  5. Insurance

    What Does Renter's Insurance Cover?

    Renter's insurance is supposed to cover a tenant's personal property as well as liability claims, but not all policies deliver.
  6. Insurance

    How Much Car Insurance Do I Need?

    Find out to determine how much car insurance you actually need with this overview of the different types of coverage available in your policy.
  7. Insurance

    Does Your Homeowner’s Insurance Cover Airbnb?

    Renting out a room on Airbnb can be a good way to generate income, but you need to understand what is and isn’t covered by your homeowner’s insurance first.
  8. Insurance

    For Top-Notch Insurance Coverage, Compare Quotes

    Find out how to use and compare policy options to get the best coverage at the best price.
  9. Insurance

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  10. Insurance

    5 Myths About Homeowner's Insurance

    Many homeowners believe their policies will cover them for any and all damages, but the reality can be an expensive surprise.
RELATED FAQS
  1. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
  2. Does homeowners insurance cover mold?

    Discover how mold coverage on homeowners insurance is not always guaranteed and how to make sure it is there for you if you ... Read Answer >>
  3. Can my insurance company refuse me coverage?

    Insurance isn't always as straightforward as other products. Insurers can deny coverage in many different instances:Non-Renewal ... Read Answer >>
  4. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  5. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  6. Does homeowners insurance cover tree damage?

    Discover how damage to a home from fallen trees is covered under your homeowners insurance policy if it happens suddenly ... Read Answer >>
Hot Definitions
  1. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  2. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  4. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  5. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  6. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
Trading Center