Despite my best efforts, I have not found a travel insurance policy that will pay out if you have to cancel flights or your accomodation due to a local lockdown.
At the moment, the FCDO advise is that all travel that is non essential (ie not for work or education or a few other reasons) is not allowed, which means you wont get cover with most insurers. However, Battleface will give you cover right now (November 2020) as they deal with insurance for journalists who need to go to war zones etc. Good to know it’s out there, although I shouldn’t think too many people will feel the need for that at the moment.
Once the lockdown is over however, more companies will be offering cover to those who want to book holidays, ensuring that should you get ill when away you would be able to get hospital treatment, or giving you a daily allowence should you need to self isolate whilst still away. Sometimes, this would be an added extra to your standard insurance so make sure you check the small print before paying for anything.
It’s unlikely that any policy would cover you if you decided to cancel due to concern about the pandemic – that is when you’d need to have looked at the cancellation policy of the accomodation you’ve booked. If the airline cancels your flight, a lot of them will offer refunds, whilst some only offer travel vouchers.