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%)

Join our mailing list:

Leave a comment



Latest Comments

Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

view article
Tony Gimple
Tony Gimple 27 Nov 2016

It's not just the lack of estate agency advice that's costing landlords money; most are getting seriously bad advice from their accountants resulting in tax bills far higher than they need to be. Likewise,...

view article
Sally Walmsley
Sally Walmsley 18 Nov 2016

The RLA stands by its sell-off statistics. While we welcome the feedback from Mr Jagota and are delighted to hear how well things are going for landlords in the north east, we would like to make it clear...

view article
Sheryl87
Sheryl87 18 Nov 2016

The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming...

view article
Sheryl87
Sheryl87 18 Nov 2016

Renting out your house can be risky business. It's good to think about residential landlords insurance. Standard cover includes buildings cover and cover for loss of rent following damage to a property...

view article
AmberMorris
AmberMorris 09 Nov 2016

Fear of ghosts, really?? Ok, I get the fear of bats in the attic and mice and rats running under your nose - those are easy to deal with pest issues which are really unpleasant and can turn you off. But...

view article
AmberMorris
AmberMorris 08 Nov 2016

In my experience, It has always been a matter of discussion between the landlord and the tenant. There are cases when it's clear who's responsible for the pest control costs. I see a lot of people in forums...

view article
warren
warren 08 Nov 2016

There you go buddy :)

view article
Agent_PeeBee
Agent_PeeBee 07 Nov 2016

Any reason why my comment to this 'article' has not been published?

view article
Sean Lees
Sean Lees 04 Nov 2016

I don't think anyone can say dogs or cats are better or worse; depends on the animal, its age, how long it's left inside, etc. How bad the mess is depends somewhat on whether you are renting furniture...

view article
daniel black
daniel black 25 Oct 2016

I've been keeping a close eye on what the effect of Brexit has been on the rental market and it's a very mixed bag. Whilst the majority of the news focuses on London's market. I think this time next year...

view article
Northerner
Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

view article

Related stories

More articles from Property

Specialist Lending Roadshow 2017

24th-27th November

4 days
7 specialists
4 locations
Free to attend

Click here to register now