Travel Insurance - am i covered in case of scam?

Morning all,

Family of 4 and booked a villa direct with the owner. The villa was recommended by a colleague who has stayed there before.

Their villa is advertised on a rental villa website but you can also book direct through their own website - better price so we booked direct.

After payment the villa availability was matched to our booking on their own site and the villa company site, however, the villa has now been taken off the main website.

I have emailed, whatsapped and spoke with the UK owners (facebook stalked too ) who state that this is their last year renting and they are selling up. However, i do have a worry, just in case we get to our destination and we have no accommodation!

As recommended by MSE i have taken out hoiday insurance with Leisure Guard:

Policy and passenger information
Policy Number: xxxx Lead Insured: xxxx
Policy Type: Premier
Address: xxxxx
Territorial Limits: Whole of Europe xxxx
Date Issued: xxxx xxxx
Policy starts: xxxx
Policy expires: xxxxx
No. Passengers: 4 Postcode: xxxx
Payment Total: xxxxxx

Cover Options:
All Insured

In the policy it mentions End Supplier Failure, are we covered if the villa is unavailable upon our arrival? And what's the procedure when we are there? Book in to a hotel? Call the insurance company?

We usually book package holidays and so first time booking direct. I'm 99% sure everything is fine, but i always look at worse case and need a contingency plan!