Leona--MOST places do not have such a harsh cancellation penalty. PERSONALLY, I would not accept that. Trip cancellation insurance pays, regardless of the type of accommodation, but doesn't cover if you just decide not to go, unless you buy "cancel for any reason" coverage, which is very expensive. You have to cancel for a covered reason, which generally is your health, or a family member, etc., but they are VERY strict about those things, so you might need to cancel, thinking it is covered, when it turns out it is not.

Rainbow is a pretty big complex. I think actually most units there are fairly similar. Why don't you look for another unit there which doesn't have that cancellation policy? Or at the Cliff? The Cliff would probably be more expensive though.

I presume that you know that Bill and Elaine live at Rainbow. I've visited their unit, which is very nice.

Best wishes in your search!