Signs of water damage in your walls can be light-brown or beige spots. You could also find a spot of peeling or flaking paint that's caused by excess moisture. These are clear signs of an active leak, and your first move should be to turn off the water to your home.
It damages your walls\n\n If left alone, water can damage walls severely, necessitating expensive repairs. Typical water damage to walls includes warping and peeling paint or wallpaper. Wet sheetrock and drywall are weaker and prone to break. In time, the house's structural integrity becomes compromised.