Using an LPA for Insurance Policies

Written by James Tyrrell · Reviewed by Anthony Dalton · Last reviewed 16 March 2026

When someone loses mental capacity, their insurance policies do not manage themselves. Home insurance can lapse, car insurance may go unrenewed, and critical illness claims can go unmade. A registered Property and Financial Affairs LPA gives the attorney the legal authority to manage all of the donor's insurance policies — from renewals and claims to cancellations and switches.

Why Insurance Management Falls to the Attorney

A home insurance policy lapses because nobody renewed it. A car sits uninsured on the driveway. A critical illness claim goes unmade. These are the kinds of problems that arise when someone loses capacity and no one is authorised to manage their insurance. The attorney appointed under a Property and Financial Affairs LPA must step in to prevent exactly these situations.

Insurance policies are a vital part of someone's financial life — home insurance protects their most valuable asset, car insurance is a legal requirement, and life or health insurance may be critical to the family's financial security. A registered LPA gives the attorney the legal authority to deal with insurers on the donor's behalf.

What Insurance Companies Need to Verify Your LPA

Before an insurance company will allow you to manage the donor's policy, they will need to verify your authority. Most insurers will ask for:

• A certified copy of the registered LPA (not the original — keep that safe)
• Proof of your identity as the named attorney (passport or driving licence)
• The donor's policy number and personal details
• In some cases, a covering letter explaining that you wish to be recorded as the attorney on the account

Many insurers now accept verification through the OPG's online "Use a lasting power of attorney" service, which allows them to check the LPA digitally. This can speed up the process considerably. Once verified, the insurer will add a note to the donor's account so you can manage the policy going forward.

Managing the Donor's Home Insurance

Home insurance is one of the most important policies to keep in place, especially if the donor owns property. Review the existing buildings and contents insurance to make sure it remains adequate. Several situations require particular attention:

• Unoccupied property: If the donor has moved into a care home and their house is empty, you must notify the insurer immediately. Most standard home insurance policies exclude cover — or significantly limit it — if the property is unoccupied for more than 30 or 60 consecutive days. You may need to switch to a specialist unoccupied property policy.
• Letting the property: If you decide to let the donor's home to generate income for their care, standard home insurance will not cover a tenanted property. You will need landlord insurance instead.
• Renewal: When the policy comes up for renewal, compare quotes to ensure the donor is getting a fair price. Loyalty does not always mean value, and shopping around is part of acting in their best interests.
• Claims: If the property suffers damage (e.g. from a burst pipe or storm), you can make a claim on the donor's behalf and manage the repair process.

Our guide on how attorneys manage finances covers the broader duty to protect the donor's assets, which very much includes ensuring adequate insurance cover.

Managing Car Insurance

If the donor has a car and can no longer drive, there are several decisions the attorney may need to make:

• Cancel the policy: If the donor will not be driving again, cancel the motor insurance and notify the DVLA that the vehicle is off the road (SORN) or arrange for it to be sold.
• Keep the policy active: If the car is still needed (e.g. a family member drives the donor to appointments), you may need to adjust the policy to add or change named drivers.
• Sell the vehicle: If selling the car is in the donor's best interests, ensure the insurance remains in place until the sale is completed and the vehicle is handed over.

Life Insurance and Critical Illness Cover

Life insurance and critical illness policies require careful handling. As an attorney, you should:

• Keep premiums paid: If the donor has a life insurance policy that is still in force, ensure premiums continue to be paid from the donor's funds. A lapsed policy could deprive the donor's beneficiaries of a significant pay-out.
• Check if a claim can be made: If the donor has critical illness cover and has been diagnosed with a qualifying condition, you can make a claim on their behalf. This could provide a lump sum to help fund care.
• Review whether the policy is still needed: If the donor's life insurance was taken out to cover a mortgage that has since been repaid, it may no longer be necessary. However, be cautious — cancelling a policy has permanent consequences and should only be done after careful consideration of the donor's overall financial position.
• Policies written in trust: Some life insurance policies are written in trust, which means the proceeds go directly to named beneficiaries and do not form part of the donor's estate. In this case, the attorney's ability to manage the policy may be limited — the trustees of the policy will handle any claims.

Private Medical and Health Insurance

If the donor has private medical insurance (PMI) or a health cash plan, the attorney should:

• Continue paying premiums if the cover is still beneficial to the donor
• Make claims for eligible treatments — gather invoices, consultant letters and treatment details
• Review the policy at renewal to ensure it still provides value for money given the donor's current health needs
• Consider whether the policy should be cancelled if the donor is now receiving all their care through the NHS or a care home

Be aware that some PMI policies have age-related premium increases or may exclude pre-existing conditions. If you cancel a policy, the donor may not be able to get equivalent cover again, so weigh this decision carefully.

Practical Checklist for Managing Insurance as an Attorney

Staying on top of the donor's insurance policies requires organisation. These steps will help:

• Create a policy register: List every insurance policy the donor holds, including insurer names, policy numbers, renewal dates, premiums and cover levels.
• Set renewal reminders: Mark renewal dates in your diary so you have time to review and compare quotes before auto-renewal kicks in.
• Notify all insurers: Register the LPA with every insurer as soon as possible, even if no changes are needed immediately.
• Keep records: File all correspondence, policy documents, claims forms and receipts. You may need to account for your decisions if questioned by the OPG or other family members.
• Act promptly on claims: Insurance claims often have time limits. If an incident occurs, notify the insurer as soon as possible to protect the donor's rights.
• Do not over-insure or under-insure: Ensure the donor has the right level of cover — paying for unnecessary policies wastes their money, but inadequate cover leaves them exposed to financial risk.

Insurance premiums and claim payouts are typically handled through bank accounts. Our guide on how LPAs work with banks explains how to register with the donor's financial institutions.

Helpful Answers on LPAs and Insurance

This guide was last reviewed and updated on 16 March 2026. Information is based on current legislation and OPG guidance for England and Wales.

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