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 Pipe Breaks Do you know what to do if a pipe breaks in your house? Did You Know This Fact About Damaged Property? Damaged property during the claims process shouldn't be thrown away. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.