Any water service can fail, the thought is to be preemptive with braided hoses, burst safety valves, drain pans with shower drains, alarms, easy access shutoff valves, multiple sump pumps w/ battery back up, etc etc.
As a flooring contractor I have seen a lot of water damage. The most frequent damage has not been from bursts but a slow drip leak over a long period of time which produces extensive hidden rot. A total shocker when starting a floor install. One job was so soaked that in addition to cabinets and two joists, I had to remove the vinyl siding to replace rotted/soaked insulation & OSB because the water wicked up off the floor.
