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



Our Next Event

Complex Lending Roadshow March 2017

Complex Lending Roadshow March 2017

Bolton - 14/03/2017

Barnsley - 15/03/2017

Solihull - 16/03/2017

Watford - 17/03/2017

Register now

Latest Comments

Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

view article
CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

view article
Tony Gimple
Tony Gimple 16 Jan 2017

HMOs do make great commercial sense, but do the area research first!

view article
OJoyce
OJoyce 30 Dec 2016

We can only hope this will bring the results we all want and strive for.

view article
Reality
Reality 21 Dec 2016

The changes to land tax were a shock to many when it was first announced by the Chancellor in 2015?s Autumn Statement. However, once the changes came into place and the full details were digested, it?s...

view article
akbar ali dayala
akbar ali dayala 20 Dec 2016

I am a landlord and director of an online letting agents at the moment we charge tenants minimal fees and landlord also meaning we can get best deals for tenants all around if the ban comes in it...

view article
milessgabriel
milessgabriel 05 Dec 2016

Useful article

view article
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

Related stories

More articles from Property