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 a Tree Falls Do you know what to do if a tree falls on your house, damaging your roof? Insurance Needs Assessment: Married With Children When you’re married and have children, insurance needs will be different. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.