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 Best of Both Worlds Here are a few reasons we’ve chosen to be independent. Protecting Your Business from the Loss of a Key Person Business owners may be able to protect themselves from the financial consequences of losing a key employee. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.