For many of us, our home is our largest asset. It pays to maintain and improve its value. If your home value increases, so does your home equity. In addition to increasing your personal net worth and giving you the means to trade-up, you can borrow from your greater equity using a home equity loan or line of credit.

In addition to improving the benefits that you receive, remodeling can improve your home value. Those that tend to be most valuable include additions to living space or improvements to bedrooms, bathrooms and kitchens.

Maintaining and improving your home value is sometimes easier if you use licensed contractors. These include roofers, carpenters, electricians and plumbers. If you use a licensed contractor, try to obtain more than one proposal, or bid, for the project. At minimum, a proposal should be in writing and include:

• Contractor general information, including license number.

• Details of renovation project, including description of parts.

• Project dates and phases-of-completion when funding is required.

• Proof of liability and related insurance coverage, including worker's compensation.

• Proof of all necessary permits to complete project.

• A written warranty of project completion, including a refund for unused materials.

• Promise to clean up work site at project's completion.

• Provision that allows you to approve any modifications to the original proposal.

• Payment schedule for funding each phase of the project.

You can also protect your home value with a home warranty, which covers major home defects for up to 10 years. Many builders of new homes participate in the Home Owners Warranty program. If your home is not new, hire an inspector to help you get a policy that protects your home value.