When choosing a floor covering for your basement, keep in mind that basements can get very damp. If you choose the wrong type of flooring, you may have to contend with fungus and mold. Carpeting is definitely not the best choice when it comes to covering basement floors. Engineered hardwood is best for basement flooring. It is moisture resistant. Therefore, fungus and mold will not be a worry. Laminate flooring and ceramic tile are both good choices as well. Either will provide protection against damp conditions.