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 Extended Care: A Patchwork of Possibilities What is your plan for health care during retirement? Protecting Your Home Against Flood Loss Protect yourself against the damage that your homeowners policy doesn’t cover. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.