I heard that buying the trip insurance from Disney's recommended insurance comapny is not a good deal. Someone posted that they will only pay you $5 per point for a cancellation. Does anyone know if that is correct?
If you have a rental agreement that says there is no refund for cancellation, you can get travel insurance to cover cancellation penalties. When I rented a couple of years ago, I bought Travelex, and they assured me that they would cover our rental if I had to cancel for a covered reason.
So I would make sure the renter has an agreement spelling out what happens if they cancel. Then I would double check with the commercially available insurance policies to make sure they would cover for that usage.