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It’s been my experience that most homeowners policies do not cover this type of work. Check with your insuror before counting on their money.
It makes perfect sense to cut the concrete and regrade and replace the piping. I don’t know of anyother way you can be assured of proper drainage in the future without having the proper grade on your waste lines. Just make sure that when the regrading is performed that the backfill under the piping is properly compacted, so you will not experience sagging of the piping in the future.