A hut – terrible state (4)
I believe the answer is:
utah
'state' is the definition.
(Utah is an example)
'a hut terrible' is the wordplay.
'terrible' is an anagram indicator.
'a'+'hut'='ahut'
'ahut' is an anagram of 'UTAH'.
(Other definitions for utah that I've seen before include "State founded by Mormon" , "Bryce Canyon US state" , "State of western US" , "A hut marks the State" , "In USA, it's the Mormon state" .)