Flight home (Madeira to UK) cancelled. Get next flight with original airline or find our own way home?

Hi all.

Our Easyjet flight home has been cancelled because of bad weather. The options given to us by Easyjet are to rebook onto a new flight with them, or get a refund/voucher. The next available flight back is on Thursday, which is very much not ideal. There are some other ways home but they all seem to involve changes and are expensive at short notice.

We have travel insurance which covers expenses incurred in the event of travel disruption where a flight is cancelled, including new travel plans and accommodation. If we choose to rebook with Easyjet, am I right in thinking they are obliged to provide us with accommodation until the rebooked flight? And as such vice versa - if we DON'T rebook with them and instead choose a refund, I presume that means they have no obligation to provide accommodation?

With regards to insurance, I'm sure it differs depending on the package, but typically, if we choose a refund from Easyjet and then book alternative flights, will the insurance still reimburse us the cost of those flights even though we were refunded for the originals?

Just want to make sure I make a well informed decision. Many thanks for any insight.