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 Your DNA Test If your family relies on your income, it’s critical to know what their needs would be in the event of your death. Did You Know This Fact About Basement Flooding? A simple precaution can help prevent basement flooding. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.