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 Combine Your Policies and Save Some things just make perfect sense in pairs. Did You Know This Fact About Fire Extinguishers? How often should you check your fire extinguishers? Do you know? Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.