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 Coaches Coaches have helped you your whole life, in ways big and small. We’d like to be one of them. What is Exposure? Do you know what Exposure is? Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.