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? Does Your Credit Score Affect Your Insurance Rates? Your credit score may influence how much you pay for auto and home insurance. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.