I think that would depend on the age and type of sewer line. From what I’ve seen, the typical replacement cost of an older, (originally clay) sewer line runs around $6,000 — this was in L.A., and a few years ago, so things might have changed a bit. Also, these pipes were probably ~40′ long, if not longer. One was on a fairly steep hill.
They can also inject resins that will line the existing pipe, which I believe is less expensive. Best to call around just to see what the costs would be for the length of your sewer pipe.
After getting costs, read the fine print on this warranty agreement to see what kind of restrictions and exclusions might be in there.
This *might* be a good deal, depending on all of the above, but it could just as easily be an expensive warranty that would be severely restrictive and end up costing more than just dealing with it yourself. After all, that’s the only way an insurance company can make money — if the cost of the warranties they sell is more than the total cost of the repairs they cover.