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Yes, you can finish a basement that leaks, as long as you address the leak first. Before finishing a basement, you’ll need to repair any cracks in the walls and waterproof the basement to prevent future leaks. It’s much harder to clean up a water leak from a finished basement than an unfinished one, so preemptively addressing any leaking areas prevents expensive repairs in the future.

Below-ground shelters are the best in terms of durability, but there is a risk of flooding and obstruction. Modern technology and rigorous construction requirements make above-ground shelters a better option for accessibility, safety, and, usually, your budget. They may not have the same aesthetic appeal, but many of their features make above-ground shelters a better option. 

Proper basement ventilation is very effective at reducing humidity. Without enough ventilation, your basement is prone to mold and moisture damage. Your basement should have as much natural ventilation via windows and doors as possible, and if your budget allows, you should also consider installing an ERV system to keep basement humidity levels at bay.

In most cases, a crawl space will not dry out on its own unless the moisture comes from an uncommon flood and isn’t expected to be a recurring issue. For most homeowners, moisture problems in the crawl space will only continue to get worse over time, so addressing the underlying problem with gutter systems or a foundation drainage system and setting up a preventative solution like a dehumidifier is necessary.