Looking to educate myself on points that are "in-holding"

[IMMkXLVI]

I don't currently have any points that are in-holding but a recent post I read concerning this aspect of DVC has me wanting to better understand the policy.

I know if a reservation is cancelled between the 1st and 31st day, the points used for that reservation are returned but with restriction on how they are used
going forward. I know Disney refers to it as "in-holding" and that it limits the points to reservations that can be made within 60 days from the then current date.
So no further out than 60 days. If the circumstance that forced a member to take the drastic step of cancelling a reservation knowing what would become of the
points should occur a few months before their UY, there might not be any availability in which to use them and precious little time before they expire.

I suppose the only way to avoid this would be the trip protection, it would at least mitigate the dues on the forfeited points. Or would it? Would the TravelEx coverage
cover the points if Disney places them in holding? technically, they aren't forfeited until the UY expires them and TravelEx could argue it is your fault for not using them?

Seems like a lot of grey area. Has anyone ever had the misfortune of being in this scenario with TravelEX?


EDIT:
I called DVC MS and was told that a member would need to file a claim with TravelEX for a cancelled reservation, provided the cancellation was for a covered reason and the claim was approved, TravelEX would claim the in-holding points and reimburse at the rate equal to the dues. I asked of this coverage applies to reservations where my wife and I are not in attendance, say the kids booked something or we rented the points. She said coverage would not apply in those situations.

 

[Genie+]

Travelex helps reduce the pain and the price is reasonable. It’s a flat rate of $99/yr and covers just one UY of points, but that can include multiple contracts in the same membership. It’s going to be a better value for someone using 450pts that year than just one short 50pt trip. The insurance doesn’t cover full cost of points, just dues.

The reimbursement of lost DVC points is only a small part of why you would by travel insurance for trips booked with points. The bigger issue is what the insurance can do for you if you are on your trip and have something like a major medical issue that requires emergency evacuation or some other medical expense or have an accident with a rental car, etc. I think in these situations without insurance you would be paying out of pocket much more the some perceived value of points on a rental market. So the most that DVC travel insurance would cost is $300 to cover 3 use years on a trip for everyone in your party. That seems like a bargain compared to what outside travel insurance would cost

In addition to covering your points some of the additional items covered are
Emergency Evacuation $250,000
Accident and sickness medical expenses. $25,000
Car rental collision. $35,000
Accidental or unintentional damage to your unit $2,000.

In addition to covering your points some of the additional items covered are
Emergency Evacuation $250,000
Accident and sickness medical expenses. $25,000
Car rental collision. $35,000
Accidental or unintentional damage to your unit $2,000.

 

[Genie+]

I do not yet have experience with holding points (thankfully lol). From what I’ve read there are a few situations where you can move the coconuts around so holding points get used in an existing reservation to free up the better points. I don’t fully understand details here but here’s one link discussing:

https://www.disboards.com/threads/switching-holding-points-to-existing-reservation.3894573/