p><strong>Avoiding damage to basements including situations of high moisture and water damage requires a series of steps. </strong>What we are proposing is that you shim walls up slightly so that small amounts of water can flow beneath without saturating wood framing. See more here – </p> <p><strong><a href="/guides/2270/basement-renovations-how-to-prevent-mold-when-retrofitting-basements/" target="_blank">How to build basements properly so they won’t develop mold </a></strong></p> <p>Your basement walls are not structural, so you can easily shim them up slightly without a problem. You can still finish right to the floor with baseboard trim, and in the even of minor flooding you would only need to replace the trim and not have the hassle of dealing with the walls themselves. This can be done with small blocks of foam, or by using <a href="/products/1191/teksill-solutions-teksill-vented-sill-plate/" target="_blank">vented sill plates</a> designed for exactly that purpose. </p> <p>As for your other concerns, the framed wall is not, or should not be your air barrier. Air will leak below any framed wall, and mice and bugs as well will find their way through if they’re already inside the basement.  </p