With the average household income doubling over the past 20 years, it has led to more than 3.5 million now considered ‘mid net worth’.

These are households with an income of £57,000 or more, but homeowners are failing to take out appropriate insurance as 49% of mid net worth homeowners don’t consider themselves wealthy.

According to new research by LV= Broker, 79% of affluent households underinsure, retaining standard policies instead of trading up, despite having above-average household income and a range of luxury items in their properties.

If you’ve any of these items, you fall under the mid net worth category:

• Home office
• Vinyl collections
• Limited edition art
• A kids play room
• Music delivery system, e.g. Sonos
• Under-floor heating
• Nutrient extractor, e.g. Nutri-Bullet
• Wine fridge
• Walk in wardrobe
• Luxury paint / wall paper, e.g. Farrow & Ball paint
• Range cooker, e.g. AGA or Rangemaster

Michael Lawrence, personal lines Director at LV= broker said: “Brokers face a challenge in that many of their customers are well-off and require premium products, but these people don’t often feel wealthy so might not opt for classic ‘premium’ products.

“Brokers need a more diverse product offering that combines solid cover at a competitive rate and we’re confident that ABC now does this even better than before.”