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? What is a Loss? Do you know what a Loss is? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.