You should be able to get
trip insurance of some type to cover the cost of your trip. They won't care that you're renting points from a
DVC member - technically, the DVC member will make a reservation and "sell" it to you, just like a regular hotel "sells" you a reservation. I wouldn't even try to explain the whole DVC points and renting thing - just investigate how much it would cost to reimburse you for the cost (how much you paid for the points) of the reservation.
I've never used trip insurance, so don't know any particulars, but I imagine you'd go through the normal process when looking for a service that's new to you - check out various trip insurance companies, compare them to what - if anything - the BBB knows about them, maybe check Angie's List, Yelp, Google, etc. You might do a search of these boards for "trip insurance" to see if there have been any threads of people saying that a) they bought insurance and b) had to use it and, then, c) what company they used and if they were pleased with the result.
