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 If You're In An Accident Do you know what to do if you're in a car accident? Did You Know This Fact About Basement Flooding? A simple precaution can help prevent basement flooding. Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.