Are we insured if we pay the full holiday balance - Covid-19?

WishYouWereHere

Hello,  would appreciate any advice....Sorry I think I posted this previously in the wrong place!

I am one of the thousands of people who booked their holiday for Summer 2020 a year in advance. There must be many others in a similar position, and who are not sure what to do or what their financial rights are. We have not booked a traditional 'package' holiday (as we are utilising airmiles we have collected with Virgin Atlantic).

This is our scenario:
Jun 2019: Booked accommodation only with Virgin Holidays. Deposit paid £350

Jul 2019: Booked accommodation and theme park tickets with Disney Holidays UK. Deposit paid £100

Aug 2019: Booked outbound flight with Virgin Atlantic using my accumulated Virgin Atlantic Fly miles. Taxes paid £641 

Aug 2019: Added additional accommodation, car hire and theme park tickets to Virgin Holidays booking above.

Sep 2019: Booked inbound (return) flights with Virgin Atlantic utilising my husband's Virgin Atlantic Fly miles. Taxes paid $499

We have also paid for a non-refundable pre-flight hotel at Manchester airport through Expedia: Paid £126

An annual travel insurance policy was purchased in November 2019 (with disruption cover) so it is my understanding that this covers such as the coronavirus pandemic.

So far we have paid out in excess of £1700..

We are due to fly out on 4th July 2020 and return on 5th August 2020 (a celebratory long holiday to Florida!)

The outstanding balance for Virgin Hols is due on 19th April, (within the next month) and for Disney Holidays 31st May

In light of the ongoing situation regarding Covid-19 there is difficulty in knowing what to do in terms of paying the holiday balances, and how we stand legally. It seems highly unlikely that our holiday (and thousands of other people's) will go ahead, but of course, there is no way of knowing for sure.

If we pay the holiday balances to each travel company, I suspect they will be unlikely to refund the money, and will probably direct us to claiming on our Insurance. Although, the Insurance company are likely to question why we paid the balances in such uncertain times - and so I guess will be unlikely to refund our money.

The current travel ban is for 30 days, and so leaves people who are due to pay their holiday balance for a Summer break in a precarious situation.  I am also pretty sure this this means we cannot cancel and claim back monies paid so far (holiday deposits, flight taxes, pre-flight hotel bookings), which for us is over £1700 as detailed above (as the travel ban is short term). 

For those whose travel is within the 30 day travel ban, and who will have paid their balances prior to this outbreak becoming so serious, the situation is clear. But for others travelling later and with balances due, it is not.

A further complication is that we can only take our chosen holiday in July due to the length (we are educators so our holidays are dictated) so cannot move it to later this year.

Does anyone know how we stand legally, and what our obligations are? I am pretty sure that not paying the balances will mean that the money we have paid so far will be lost to the travel companies without a ban in place. But will the Insurance pay out such a large sum (around £10,000 in total) if travel cannot go ahead in July, knowing that we would have paid the balances at a time of complete uncertainty?
Please help!! Thanks.