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. An Overview of Renter’s Insurance Don’t overlook the need for renter’s insurance if you rent your home. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.