According to the ordinance or law exclusion, which of the following does NOT apply?

The ordinance or law exclusion pertains to how insurance policies handle changes in building codes and laws that may affect property damage claims. The correct choice indicates that coverage for ordinance or law is not required by state law. This means that while an insurer may offer this coverage, policyholders are not mandated to include it in their homeowners or property insurance.

This exclusion plays a significant role because it means that if a policyholder incurs costs to make their property compliant with new laws or codes after a loss, such costs typically would not be covered unless the policy specifically includes such coverage through an endorsement.

The assertion that it is required by state law is incorrect because coverage for upgrades relating to ordinance or law is not universally mandated across all states. Therefore, policyholders may need to obtain this additional coverage depending on their specific needs and the particular regulations in their area. The other choices address aspects that relate to how the exclusion functions in practice, specifically regarding compliance with laws and local regulations, without implying a legal requirement for coverage.