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Your insurance should have covered you but, as you say it doesn't, so next time certainly try a different insurance company.
I would suggest that you look at your Rules and Conditions for Princess because I am sure that even though you have paid the full amount, ( I understand that is what you have done) you should, if you cancel now only loose your deposit and you will only lose that amount up to 56 days before the cruise so think about that then if you decide to cancel do this by notifying your agent and Princess in writing before that 56 day mark. .......Neil