Home encapsulating a royal residence (6)
I believe the answer is:
palace
'royal residence' is the definition.
(I've seen this before)
'home encapsulating a' is the wordplay.
'home' becomes 'place' ('place' can be a synonym of 'home').
'encapsulating' indicates putting letters inside (I've seen this in other clues).
'place' going around 'a' is 'PALACE'.
(Other definitions for palace that I've seen before include "Locality round a monarch's official residence" , "Home fit for a king" , "Royal mansion" , "Grand building" , "Head of state's residence" .)