I live in a basement and have so for 24 yrs. Rather my home is a basement. We call them earth contact homes around these parts. Its was built and designed as a finished home on a proper site. Water intrusion is a real worry but I've never suffered from it. I actually worry about earthquakes a lot more. I don't worry too much about tornadoes either, but one should be weather aware in all seasons. I think having insurance is best advice alongside with, don't put any thing you care about in a basement that wasn't designed to be living quarters. Basements are all fun and games until the electricity goes out. And then its just really dark.