-- Get a qualified professional to identify the source of any water problems -- such as a cracked foundation, inadequate waterproofing or exterior grading that slopes toward the house -- and prescribe a fix.
-- Install one or more sump pumps, with one powered by a battery or generator in case of a power failure.
-- Use a dehumidifier and install proper ventilation for adequate air exchange.
If your basement is already finished, check the walls to determine the extent of water penetration that has occurred. If dampness has wicked up your finished walls, there's high potential for mold to grow unseen. It is essential that the wet sheetrock and saturated insulation be removed, the affected area thoroughly dried out and new insulation and sheetrock installed, said Ed Perryman, president of Perryman Consulting & Construction Services in Barrie, Ontario.
If the entire perimeter interior wall system -- including studs and sheetrock -- has to be replaced, you need to consider a new insulation system that controls the flow of air and water vapor.
Plan for adequate ventilation and air exchange to prevent stale, moisture-laden air from accumulating in corners and "dead spaces." Perryman recommended locating heat registers and cold-air returns low on the walls to encourage air movement and evaporation at floor level, where moisture is most likely to accumulate.
Finally, install a subfloor, such as DRIcore ( http://www.dricore.com), instead of laying the new finished floor directly over the concrete, Trumbull and Perryman said. This all-in-one modular subfloor has a built-in moisture barrier that will prevent future small leaks from ruining your basement and its furnishings. The subfloor's raised design allows air to circulate between it and the concrete to help evaporate moisture.