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 Forecast Life is as unpredictable as the weather. We’d love to help you prepare. Gun Ownership and Your Homeowners Policy Gun owners need to make sure that their homeowners policy covers the full value of their firearm(s) and personal liability. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.