What happens if I book a stay using points but the airline cancels?

Basically I'm looking at a 3 day stay and the only airlines that fly nonstop to thr location are Breeze and Spirit.

I've never flown either before but they only operate one flight per day to the location and Googling leads to cancelation horror stories.

Im new to reward travel but from what I can tell, I'd be charged a cash rate for our stay for a no show if the flight canceled. Is this right? We can't afford the cash rate so I'm spooked and could appreciate some clarity and reassurance.