I have a halo engagement ring with 50 tiny micro-pave diamonds. Every few months, one falls out. The first two times, insurance paid. The third time, they denied it and sent a non-renewal notice. “This is a manufacturing defect / design flaw.”
Key Takeaways
- Micro-Pave is High Maintenance: These settings are delicate. Stones fall out. It is a known issue.
- Frequency Kills Coverage: Insurance is for rare events. If you file a claim every 6 months for a $50 stone, you are a “high frequency” claimant. They will drop you.
- Defective Design Exclusion: If stones keep falling out, the insurer argues the ring is poorly made (Defective Design). This allows them to deny future claims for the same issue.
- Self-Insure Small Stones: It is cheaper to pay a jeweler $50 to replace a melee diamond than to risk your insurance policy. Save insurance for the center stone.
The “Why” (The Trap)
The trap is “Nuisance Claims.”
Filing a claim for $100 triggers the same administrative cost for the insurer as a $10,000 claim.
If you file three small claims, the algorithm flags you as “unprofitable” and “negligent.”
The insurer realizes the ring is a lemon and cuts their losses.
The Investigation (My Analysis of Pave)
I asked jewelers about “Pave Shedding.”
The Jeweler’s Warranty
- The Solution: Good jewelers offer a warranty on pave stones. “If one falls out, we replace it for free.” Rely on this, not insurance.
The Deductible Math
- The Logic: If your deductible is $0, you can claim it. But should you? No. A $50 repair isn’t worth a mark on your CLUE report.
Jewelers Mutual
- The Policy: They cover it. But they track frequency. If it happens twice, they might require a full re-tipping/repair by a master jeweler before insuring it again.
[IMAGE: Macro photo of a micro-pave band with several empty holes where diamonds used to be]
Comparison Table
| Issue | Jeweler Warranty | Insurance Claim | Self-Pay |
| Cost to You | $0 | Deductible ( 0−0− 500) | ~$50 – $100 |
| Risk | None | Policy Cancellation | None |
| Speed | Fast | Slow (Paperwork) | Fastest |
Step-by-Step Action Plan
- Ask for Warranty: When buying pave, demand a “lifetime diamond replacement warranty” for stones under 0.10ct.
- Tighten Prongs: Have the ring checked every 6 months. Pave prongs snag and open easily.
- Do Not Claim Small Losses: Establish a threshold. “I will only file a claim if the loss exceeds $500.”
- Re-Design: If it keeps happening, the ring is flawed. Pay to have the stones set into a channel or bezel setting.
FAQ
Can I insure just the center stone?
Usually the policy covers the “Ring.” You can’t separate the pave.
Does sizing affect pave?
Yes! Resizing a pave ring warps the metal and loosens stones. Never resize pave more than 1 size up/down.
Is invisible setting worse?
Yes. Invisible set stones (Princess cuts with grooves) fall out constantly. Insurers hate them.