You need to check each policy that you are considering but my understanding is that a standard policy will provide cover for cancellation provided the cancellation is necessary and unavoidable. I expect that that will include a country's status changing to the government's "do not go" category. It probably wont cover you if the status is unchanged but you make the decision not to go because of your own personal view of the situation.

If you are worried that civil unrest in Egypt might flair up again, you should consider other destinations.

Can anyone recommend a travel insurance company that will cover me for booking a holiday over the internet (not using a tour operator) to go to Egypt this December. I want to book it asap to get the best deals but am worried that civil unrest in Egypt may flair up again & if we are officially advised not to go by government I will loose out financially unless I can get insurance cover specifically for this scenario
many thanks