I have comprehensive travel insurance which gives €250 per person to cover food, accommodation or alternative travel if there is a delay of more than 12 hours and the carrier does not provide. If I decide to cancel the trip at that point I am covered for up to €4,000 cancellation plus up to €650 for cancelling prebooked excursions.
If after a delay of 12 hours on the homeward trip I decide to use another carrier/use hotels and buy food I am covered to a maximum of €4,000 if the carrier does not provide. An excess of €50 applies to all claims.
This is a worldwide travel policy covering health, accident, delays (inc breakdown of connecting private or public transport), baggage, legal expenses and public liability.
It costs €140 p.a. for my wife and I and is issued by a major international insurer.