That's ridiculous, the cover should be for 'the trip' and all associated components. That's certainly been the case whenever I've had to claim here through my TI provider. They really are trying it on, aren't they.I've been lodging insurance claims this week for our July Europe cancellations. Given that vouchers have an expiry date, that likely involve overseas travel, that insurance companies will never cover Covid again, and goodness knows if there will ever be a vaccine, there may be a second - third - fourth wave (hope not but that can't be declined right now) there is no way that Insurance companies can compel anyone to accept a voucher for next year instead of a refund.
As an aside, our Insurer Insureandgo, makes us lodge each type of claim separately (flight, flight, hotel, cruise) and each time will deduct their gap fee. Twice now, I've been contacted asking for the return flight details for both the cruise and the hotel. If and I know they will, they deduct their fee each time, then that will be a complaint I will follow up on later once the payments have arrived.
I've received the refund for our QR flights to Vietnam in July now; we made a gain on the ForEx there thankfully as the hotel we had booked in ARN prior to our early morning QR flight refuses to refund; so that cancels out that loss.
I'm going to monitor the Sweden situation though, if their borders are still somewhat closed to the UK then will call Booking.com and plead with them again, it's worked in the past so still an opportunity to get that hotel cost refunded too.