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Insure & Go Insurance Services Ltd / Not reimburse me a penny!

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I took out travel insurance with insure and go on the 27th july 06, and was due to travel on 8th august 06. Unfortunately at the time my ex-mother in law was in hospital receiving treatment, but not termianlly ill, it was discovered on 30th august the hospital had damaged her leg which resulted in her death on the 1st august 06 from septicema,i could not go on holiday as my children her grandchildren were very close to her and very upset, and we could not miss the funeral, so i cancelled my holiday, unfortunately the insurance company will not reimburse me a penny of what i payed out for the holiday, they have advised me it's because i did not advise them of my ex-mother in laws condition, which i did not realise i had to do, could you advise me if this is the case with most insurance companys, as they do not state this to you over the phone when asked of any medical problems regarding the people travelling.

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