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 Snapshots Your life is marked by images. Prepare for the unexpected, so you can keep those pictures going. 10 Most Common and Costly Small Business Claims Here are the 10 most common claims against small businesses. Are you covered? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.