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 Learn what to do when a pipe bursts with this helpful video flooded with smart tips. Did You Know This Fact About Claims Advances? If a fire forces you out of your home, you can ask for a claim advance. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.