By Nick Gromicko, founder of InterNACHI Water Damage Concerns Basements are typically the area of a structure most at risk for water damage because they are located below grade and surrounded by soil.  Soil releases water it has absorbed during rain or when snow melts, and the water can end up in the basement through leaks or cracks. Water can even migrate through solid concrete walls via capillary action, which is a phenomenon whereby liquid spontaneously rises in a narrow s