Basement renovation will replace the damaged elements and update some aspects of the space. Upgrading the counters and other features is considered renovation. On the other hand, basement finishing means upgrading the space to make it liveable. An unfinished basement has a bare concrete floor and exposed piping and lacks insulation. Basement finishing includes adding insulation, drywall, flooring, ceiling, plumbing, and HVAC. A finished basement can then be remodeled and renovated to suit your needs.