Sometimes homes on that side of the lake do experience flooded basements, but only in exceptional cases like the hurricane we had last summer. On the "North Shore" side you have mountains where we never see even a drop of moisture, everything rolls off into the lake
I don't live RIGHT on the lake, but drive in that area all the time. The worst part about it is when it snows or the roads are icy. The streets are so tight and curve and change elevation so often, that I completely avoid them and would rather go around via Rt. 80. That said, If you get a water front house it's worth the trouble, in my opinion - but if you don't, you might as well pick a better location. I find it very convenient to be closer to Rt. 15.
Good luck, if you do move you'll like the area. Except in the winter.