I brought a house in Vermont 2 years ago. In the unfinished section of my basement I have a sump pump. There is a finished area with carpet. In the first year I had no issues with water in the finished area. Last year we had excessive snow fall and heavy rains in early spring which resulted water seeping into finished area of the basement. Other homes in the area were also affected which are normally fine. I removed the excess water using a rug shampooer and have been using a dehumidifer and have not had any further issues during the summer. The water seems to have come up through the floor because there is no water stains on the paneling. However because it is finished, it is difficult to confirm.

I would like to tear out the carpet and replace with ceramic tile. My concern is if water seeps into the basement again next spring, is tile the best application and is there a recommendation of which type of grout (epoxy vs. sanded) would be the best choice? The area is approx 400 sq ft and I would be using 16" tile with probably a 1/8" grout line. The reason for the smaller grout line is based on the design of the tile which is made to look like Mexican tile. With help of family, I would be doing the installation myself and this would be my first installation.