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Yes, the air from a damp basement can travel up into your living area through a process called the stack effect, so moisture, mold spores, and other debris in your basement air can all decrease your indoor air quality on your main floors. Additionally, damp basements can promote the rotting of building materials, which can damage flooring, insulation, and framing on your first floor in addition to materials in the basement.

Yes, you can add a bathroom to an unfinished basement, but you’ll want to take proper precautions if doing so. As with any bathroom addition, you’ll need to make sure that it’s approved by local building authorities first. With unfinished basements, you especially need to keep an eye on proper ventilation practices.

Rigid foam board insulation is one of the safest insulation materials for basement walls. The panels offer a moisture barrier to prevent mold and mildew build-up. At the same time, this material is also fire-resistant, so you don’t have to worry as much about a fire breaking out as you would with spray foam insulation. 

Since basements are prone to water and moisture issues and the resulting problems can be expensive to repair and potentially damaging to your home, basement waterproofing is almost always worthwhile. Even for homes that haven’t experienced water infiltration, waterproofing the basement is insurance against facing expensive repair bills in the future. All basements will leak at some point, so fixing drainage issues and taking steps to prevent moisture and water infiltration is wise.