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 Surprises Making the most of surprises is a great reason to work with us. Did You Know This Fact About Emergency Preparedness? An emergency kit is essential for every household. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.