I am surprised that they are offering a $1500 refund. I usually choose Royal Caribbean, and they give no refund at all. The reason for not going doesn't matter.
I personally don't think buying travel cancelation insurance makes sense unless you cancel frequently. Sure, it cost you $8800-$1500= $7300 on this trip. But on this and the other 10 cruises (or however many you take) you avoid a very expensive insurance cost.
Now travel insurance that covers may haps while at sea is a different matter.
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