Nationwide insurance not quite what it seems

[Noodle500]

We have Nationwide cover. To me it reads if the provider has offered voucher and you decline if the trip then gets cancelled later then you wouldn't be covered for cancellation of flight not operating.
We have DIY holiday and I've made my peace that we may lose in excess of two grand.
I'm due to pay Disney balance in June but as we booked direct we can cancelled 8 days in advance.
The virgin holiday car hire, hotels and internal flight to New York I might not get back.
Our flight is a virgin reward flight that I can cancel 24 hours in advance and get taxes back. Fingers crossed they will still be operating.