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. Directors and Officers Liability Insurance Not only can D&O insurance provide financial protection, but it can help improve an organization’s decision-making. Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.