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 Contents Snapshots Your life is marked by images. Prepare for the unexpected, so you can keep those pictures going. Variable Universal Life Insurance Variable Universal Life is permanent insurance in which the policyholder directs how premiums are invested. Long-Term-Care Protection Strategies The chances of needing long-term care, its cost, and strategies for covering that cost.