Dwelling insurance covers the cost to rebuild or repair a home damaged through theft, lightning and some other natural disasters, explains Allstate. Dwelling insurance doesn't cover the replacement of a home's contents, such as furniture. A homeowner needs a separate personal property policy for those items.
Dwelling insurance usually covers a house and any attached structures, such as a garage or a connected patio. The insurance usually doesn't cover unattached structures on the property, including backyard sheds and guest houses, Allstate notes. While dwelling insurance covers damage from some natural disasters, these policies often exclude damage that results from earthquakes or flooding.