I recently was booked on an Air New Zealand flight from Melbourne to Wellington, with connections to Nelson. Due to mechanical problems, the flight was delayed and eventually cancelled. Air NZ rebooked me on a later flight to Auckland, but that was too late to make a connection to Nelson. Air NZ put me up over night in Auckland and flew me to Nelson the next day. Since the flight delay occurred the day I was going to arrive in Nelson, I was too late to cancel my accomdation in Nelson for that night and thus had to pay for the night that I was not there. I filed a claim with my trip insurance, which was denied because air plane mechanical damage is not a covered reason for flight delay and I should apply to the airline. I then filed a claim with Air NZ, which was denied because they say they provided food and lodging for the night, and are not responsible for a lost deposit.
This seems to be a black hole in trip insurance. I have checked several other policies and basically each said that they are not responsible for lost deposits when a flight is delayed due to mechanical failure.
Has anyone had any success with getting either the trip insurer or the airline to take responsiblity in this situation? Is there a trip insurance that will cover plane mechanical problems?
Thanks for the help.