Press release

Have a home office, a wine fridge or a kids play room? It’s because you're mid-net-worth it

  • Premium items that indicate mid-net-worth households revealed
  • Vinyl collections, home office space and kids play room among the most common features of the mass affluent home
  • But half of ‘mid-net-worth’ homeowners don’t ‘feel wealthy’ or consider themselves well-off, leading to many being drastically underinsured

 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 decades 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 (full lists below).

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

  1. Home office (37%)
  2. Vinyl collections (18%)
  3. Limited edition art (18%)
  4. A kids play room (13%)
  5. Music delivery system, e.g. Sonos (13%)
  6. Under-floor heating (13%)
  7. Nutrient extractor, e.g. Nutri-Bullet (12%)
  8. Wine fridge (12%)
  9. Walk in wardrobe (11%)
  10. Luxury paint / wall paper, e.g. Farrow & Ball paint (10%)
  11. Range cooker, e.g. 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.

"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."

Selwyn Fernandes, Managing Director of LV= Home Insurance

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

  1. Grand Piano (43%)
  2. Games room (33%)
  3. Walk in wardrobe (33%)
  4. Under-floor heating (30%)
  5. AGA / range cooker (28%)
  6. Limited edition art (25%)
  7. A wet room (24%)
  8. Pizza oven (24%)
  9. 3D projector (24%)
  10. Rainforest shower (23%)

About LV=

LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We are currently the UK's number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.
Lloyd Purnell
Senior Press Officer (General Insurance)
020 7634 4433
07500 835885