Water has three phases: solid, liquid and gas/vapour. Of its three phases, liquid and vapour (when it condenses) are the most invasive and destructive elements to a building.
The root of most building problems is tied to moisture:
Damp or wet basements
Leaks
Rotting wood
Nail pops
Mouldy bathrooms
Moisture in attics
How Water Moves
Water movement occurs based on four factors:
Gravity - Drainage of rainwater, melted snow, roof water, other bulk water (lack of or improperly installed flashings)
Capillary Action - Or Wicking of moisture through porous materials due to surface tension causing natural suction
Diffusion (also called Osmosis) - When water passes through a semi-permeable membrane into an area of lesser concentration thus equalizing the concentrations on either side of the membrane
Air Movement - Water carried in the air by air movement due to pressure differences