Do you live in a mid-net-worth household?

Do you live in a mid-net-worth household?

Does your home have an AGA cooker or Belfast sink in the kitchen, a rainforest shower in the wet room or an extensive vinyl collection in the drawing room?

 Chances are you’re one of the growing numbers of ‘mid-net-worth’ households, according to LV= Home Insurance.

Research by the home insurer has found that the doubling of household income over the last two decades1 has created a multitude of ‘mass affluent’ homeowners who often don’t know their relative worth. However, over three quarters (79%) of these households are not taking out appropriate insurance for their needs.

As part of its study, LV= has identified the key perceived luxury items indicative of a mid-net-worth home– a list including ‘nutrient extractors’, wine fridges and walk-in wardrobes.

Premium items indicative of mid-net-worth households (Owned by 10%+ MNW households)

    Home office (37%)
    Vinyl collections (18%)
    Limited edition art (18%)
    A kids play room (13%)
    Music delivery system, e.g. Sonos  (13%)
    Under-floor heating (13%)
    Nutrient extractor, e.g. Nutri-Bullet (12%)
    Wine fridge (12%)
    Walk in wardrobe (11%)
    Farrow & Ball paint (10%)
    AGA or Rangemaster (10%)


The research also identified items these households aspire to own, including pizza ovens, grand pianos and rainforest showers.

Yet, many of these high-end items are potentially at risk of being underinsured – with around half of mass affluent households not identifying themselves as ‘wealthy enough’ (49%) and failing to ensure their insurance policies reflect the true value of their possessions.

Of the estimated 3.5 million mass-affluent households,2 just under a third (32%) have re-evaluated their insurance needs in the last five years. While just one in eight (12%) have taken out specific contents insurance to cover their more high-end purchases, the rest relying on standard policies that risk them being short of cover should the worst happen. More worryingly, one in 10 admit to underestimating the total value of their contents to reduce their premium.

Selwyn Fernandes, Managing Director of LV= Home Insurance, said: “An increase in disposable incomes has seen many people fill their homes with luxury goods but because they don’t consider themselves ‘mid-net-worth’ it, many people haven’t upgraded their contents cover at the same time.

It’s important your policy limits reflect what you own. Admittedly, it’s never top of people’s to do lists but it’s worth reviewing your policy at least once every three years to ensure its kept pace with your lifestyle and your possessions.”

LV= Home Insurance covers Contents up to £150,000 and Buildings up to £1 million.

Top 10 items that mass affluent homeowners are impressed by / aspire to own.

    Grand Piano (43%)
    Games room (33%)
    Walk in wardrobe (33%)
    Under-floor heating (30%)
    AGA / range cooker (28%)
    Limited edition art (25%)
    A wet room (24%)
    Pizza oven (24%)
    3D projector (24%)
    Rainforest shower (23%)

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Latest Comments

IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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