FCO Advice for Australia and New Zealand - Insurance implications

purple52

I have a gold annual policy with Virgin Money Insurance, and had a trip booked to Australia at the end of July. So far, Cathay Pacific and most of the hotels have been very reasonable and I have full refunds for most of the trip. The last 3 hotels I still have booked are on a non-refundable basis, so I was leaving them booked to avoid jeopardising an insurance claim. However, I spoke to Virgin yesterday to ask what action I should take and they were adamant that our claim would be rejected now that the FOC advice has changed, despite there being no chance of being allowed entry to Australia.

I am not entirely sure of the best course of action now; probably damage limitation by pleading with the hotels for a refund or rebooking?