I just had the same problem and have now received my full payment back into my account. Hope this helps you get your full refund!
Here is the email I sent: This order was my first with DressLily and will be my last. I don't recall seeing anything stressing the purchase of insurance. If I saw the insurance clause, I would have definitely not placed an order. Why would I want a refund to my wallet when I don't know if I will ever receive anything I order from your company?
As a one time courtesy, I would like to receive a full refund to my original payment account.
If you are unable to comply, please forward my response to the next level of review. Regards.