The term ‘high-net-worth’ has a certain cachet – conjuring up deisgner handbags, mansions and other trappings of wealth.

But mid-net-worth is a decidedly more mundane description of a person’s finances, despite it representing people with significant disposable income.

Apparently the contents of your home can clearly indicate that you are a mid-net-worth individual, or mass affluent homeowner. And this portion of society is apparently woefully underinsured, according to LV=.

Mid-net-worth markings

Do you have a home office? Perhaps a wine fridge, or an AGA cooker?

These are some common features of the mass affluent home, along with play rooms, vinyl collections and a Belfast sink.

These trappings of ‘mid’ wealth are not enough to make half of their owners actually feel wealthy, according to LV=, and as a result, over three quarters (79%) of these households are not taking out appropriate insurance for their needs.

Of the estimated 3.5m mass-affluent households, only 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.”