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 If a Tree Falls Do you know what to do if a tree falls on your house, damaging your roof? The ABC’s of Auto Insurance What kind of auto insurance should you have? Do you know? Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.