I have never heard of such a service.
As for a problem with the water pipe from the main into the house, it does happen. Last summer, I had a high water bill from Villages Utilities. I called them and said I could not have used that much water. They sent out two guys who pulled up the slab over the water meter. The little triangle marker was going around indicating water was going through the meter - and all my water was off in the house.
Luckily for me, the leak was in a PVC 1/2" pipe right at the meter and was spurting through at a pretty good speed. One of the guys called a buddy who came out in an hour and replaced a couple feet of pipe. Cost me $60 for the repair but a lot better than a high water bill for a few months.
If the PVC pipe had broke elsewhere, it would have been hard to find. I would actually consider such an insurance - if it had references to back it up from local people.
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