I can assure you that a vinyl floor, or a wall covering, is not going to stop water seepage coming in from the walls or up from underneath the floor. If the water pressure is there, almost nothing can stop it from getting through the concrete, totally. The vinyl is just a superficial thing so that they can put carboard boxes down on the floor and not have the stuff inside them get ruined. Its good for that.
If it has a working sump pump with no pipe blockages, then it should be OK, as far as flooding and major damage. Is it in an area that often gets water in the basement? Knock on the door and ask a couple of the neighbors. They would probably tell you if it always floods when it rains a lot, etc.
If I can be of any help, please contact me. Thanks,