Travelocity flight insurance refund

I bought travel insurance with Travelocity for a flight from Cuzco to Lima and Lima to Quito. On the day of the flight while at the gate awaiting to take off, the flight was suddenly cancelled. For the next five days we waited to get on a flight out of Cuzco. There were so many passengers from previously cancelled flights, and with all future flights full, I was told that it could take up to three weeks to get a flight. At that point I paid over 1000 dollars and took a 22 hour cab ride to Lima. I applied for a refund from Travelocity, and they declined to pay. I have tried to talk to someone with authority about this, and all I get is an Indian call center who answers with preprinted answers. Never buy travel insurance from Travelocity. They have no intention of paying!