My homeowners won't cover it and any water or sewr line from the house to the street is my responsibility. A neighbor just had to shell out $8500!!!
I called my and other insurance companies. No one's even heard of such a thing!

Same thing happened to us 10 years ago. Our Home Owner's insurance didn't cover it and neither did the city because it was an old septic tank that collapsed. We didn't even know it was there! Apparently when the house was hooked up to city years before, they had the city hook up on one side and the house hooked up on the other. We had to have the front porch removed, the old tank removed, new pipes put in and the whole front yard back filled. Our insurance guy said there was absolutely nothing that could have helped us. Even back then it cost us $7000