The short answer is that travel insurance covers you in the case you're that your trip got cancelled before you depart. Travel insurance policies would possibly reimburse you for expenses paid before the trip and non-refundable expenses, yet this would all depend on the travel policy that you bought.
Depending on your policy you could be covered in the case of cancellation for the below reasons:
The above is a list of possible reasons, please ensure you read your travel policy and make sure you understand what you would be covered for. Travel insurance policies would vary in their coverage and we always recommend that you compare policies to make sure you have the best possible coverage.
Use Insurance Comparison to compare travel insurance policies and check each policy’s specifics. Carefully review each policy and plan’s benefits and exclusions.
Your travel insurance policy is there to protect you in the case of an emergency. In the case of your trip being cancelled, it would be a huge benefit to be refunded the money you have already paid to book your trip – travel insurance would give you the peace of mind you need.
A thing you would learn very quickly when you travel: costs do add up but cutting corners on travel insurance could cost you more in the long term which could have been avoided.