I just reviewed both Princess vacation protection insurance packages and it appears your situation should be covered under Trip Delay. Did you provide the carrier with a written explanation from the airline for the delay? That is required. But it appears your situation is a covered "Hazard" and you were on a "Common Carrier." Seems to me you should be reimbursed for the hotel you couldn't stay at, the hotel you actually stayed at, in addition to food expenses. The only other variables are your state of residence (I chose Florida) and whether your trip began on the day you started your flight. When you applied for the policy, did you indicate your trip began on the day of your delayed flight?
IMPORTANT UPDATE: Princess insurance is pretty sneaky. The hotel arrangements, etc. must have been arranged by PRINCESS CRUISES OR PRINCESS TOURS. Your "travel arrangements" (e.g. hotel, etc.) must have been "arranged" by the "travel supplier" and this is defined as Princess Cruises or Princess Tours. Sneaky devils....