There is a difference between the actual cash value and the fair market value. In Andrews v. Great American Insurance Co., 223 N.C. 583, 27 S.E.2d 633, a new trial was granted because the court instructed the jury to award the difference in fair market value immediately before and after the fire. The standards for arriving at the fair market value are well defined.
It must be conceded that in computing loss under a policy of insurance, the manner of computing such loss, when set out in the policy, must be followed. Andrews v. Insurance Co., 223 N.C. 583, 27 S.E.2d 633; Zibelin v. Insurance Co., 229 N.C. 567, 50 S.E.2d 290; Fidelity-Phenix Fire Ins. Co. v. Henry, 248 Ky. 818, 60 S.W.2d 111; Glandon v. Farmers' Mutual Hail Insurance Ass'n. of Iowa, supra. In Andrews v. Insurance Co., supra, the court below charged the jury in effect that the measure of damages would be the difference in the reasonable market value of the airplane immediately before the fire and the reasonable market value thereof immediately thereafter.
Affirmed. Cited: Pants Co. v. Mewborn, 172 N.C. 334; Barnes v. Cherry, 190 N.C. 774; Lupton v. Edmundson, 220 N.C. 190, 191; Cheshire v. Drake, 223 N.C. 583; Williams v. Johnson, 230 N.C. 344.
Having determined that Nationwide's objection is properly preserved, we address the issue of the propriety of the instruction requested by Nationwide. The language contained in the insurance policy controls the measure of damages upon proof of a covered loss. Andrews v. Great American Ins. Co., 223 N.C. 583, 586-87, 27 S.E.2d 633, 635 (1943). The policy issued by Nationwide to the Guythers contains a "Loss Settlement" provision which provides that, with certain limitations, the policy will pay the "replacement cost" for the covered building.