Why do beavers build dams? Is it an instinct thing or necessity?
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When speaking of animals instincts are necessities.
In the case of beavers they instinctually build dams to flood areas to build their lodges. This gives them a safe place to sleep and to raise their young that is pretty much inaccessible by most predators
Beavers do not like the sound of running water and this is also how they find the spots in their dams that need fixing.
To add to the correct answer about building lodges: beaver teeth also grow continuously. They can grow up to four feet in a year. So they need to constantly be chewing on things to keep them at a reasonable length.
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