I was doing a bit more research last night ..
i don't know where to start, man. if we were on the phone, i could go on for an hour.
First off, i'm in the UK, so there will likely be some differences; and also, i'm with the AXA Group (we're N2, or N1 if you count United Healthcare, which is our partner in the US). Big insurers tend to all write policies the same way, smaller insurers can and do deviate from the norm.
(Comprehensive) Travel Insurance, henceforth CTI, tend to be cheaper products. They may offer a lot of benefits, but only under certain circumstances. One of the main aspects of these policies is "outside of your control". They will cover you for things that you have no responsibility for, but tend to exclude everything that you can option for yourself.
So, most won't let you cancel a trip unless you have a good reason. "Covid got worse" is not a good reason, as the presence of covid in that country was a previously known fact that YOU take responsibility for.
Now, IF your government says "the rates are worse now, you can/should no longer travel" then yes, you can be covered. We have the Foreign & Commonwealth Office that does just that. But if YOU say "the rates are worse" then sux2bU, CTI will not cover you.
Keep in mind that everything i say is "unless specified in the policy". I strongly, strongly recommend that once you have found a package you like, you CALL and speak with an advisor. They are liable for the advice they give you, so if a dumb agent says "oh yes cancellation is covered" then even if it isn't, you can cite that advice as legal liability.
Also note that most CTI we handle have a "travel against govt regulation" and a *pandemic* exclusion; you are still allowed to buy the insurance, but you can only use it if you travel for essential purposes (wedding, funeral, important business meeting, etc), so once again, CALL and speak to the sales department of whatever company you decide to go with.