What is Dwelling Coverage? Dwelling Coverage[dwel-ing / kuhv-er-ij]noun1.Dwelling Coverage is the portion of a Homeowner’s Insurance Policy that covers the physical structure of the insured home. It is the portion of the Policy that may help rebuild the structure of a home if it is damaged. Share | Have A Question About This Topic? Name Email Address Message Thank you! Oops! Related Content The Other Sure Thing Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared? Is Term Life Insurance for You? Term insurance is the simplest form of life insurance. Here's how it works. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.