Vinyl collection? Home office? Wine fridge? You're probably underinsured, as many mid net worth adults misjudge the value of their belongings

Hayley Kirton
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It may look cool, but will your insurer cover it? (Source: Getty)

Your well-stocked wine fridge, spacious home office and cosy underfloor heating might impress your friends, but they might also be sending a red flag to your insurance company.

According to research released today by LV= Home Insurance, over three-quarters (79 per cent) of so-called mass affluent households are underinsured.

As UK households have grown richer, they've also gathered more stuff but haven't increased their contents insurance to match. Almost half (49 per cent) of the homeowners LV= would categorise as mass affluent deem themselves too poor to be placed in that bracket.

"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," said Selwyn Fernandes, managing director of LV= Home Insurance.

Own one of these? You're probably in a mass affluent household

1. Home office (owned by 37%)

2. Vinyl collection (18%)

3. Limited edition art (18%)

4. Kids play room (13%)

5. Music delivery system, e.g. Sonos (13%)

6. Underfloor heating (13%)

7. Nutrient extractor, e.g. Nutri-Bullet (12%)

8. Wine fridge (12%)

Of the 3.5 million mass affluent households the insurer believes there are across the country, only around a third (32 per cent) have re-evaluated what insurance they need to adequately cover their possessions in the last fives years, while one in 10 admits they have purposely knocked down the possessions value figure they have given their insurer to lower their premiums.

Fernandes added: "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."

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