There is no doubt that restoring a finished basement from water damage can be an expensive proposition. If you look at what is at stake, restoring your structure compared to replacing it or doing nothing at all can seem like a much more reasonable way to protect your investment. Depending on the amount of moisture involved, what is at risk goes beyond the carpet and pad, as moisture will begin to wick up into the base trim and sheetrock. Your list of replacement items will continue to grow beyond just carpet and pad as the structure remains wet.