I've dealt with insurance companies regarding underground leaks many times over the years. It's important how you approach them or they may turn down any claim.
Remember that homeowners insurance companies are in the business of dealing with sudden unexpected failures. Especially ones that can cause lots of incidental damage. They are not in the business of helping with old, worn out pipes that may have simply failed slowly with age.
Home warrantee companies are more for dealing with worn out items like garbage disposals, garage door openers, or heating system pumps, etc. But they have a limited monetary liability that is stated in their contract.
So, when you call your home owners insurance representative for help with an underground leak, be ready to speak their language. You want to tell them things like "I have a burst pipe and it's leaking a lot of water". They'll immediately ramp up with an emergency response team that is expecting your house to look like a fish aquarium when they arrive. But you tell them that there is no visible flooding and you've had a plumber out to confirm the problem and get things shut down. He has confirmed that there is a broken pipe under the house. Then ask them what they want you to do and let them start a claim. Don't offer any explanations. And most importantly of all DON'T start talking about how this is an old house and lots of things are wrong with it and the old pipes are worn out, etc. NO. This is a sudden failure that happened with no warning. Catch my drift? See the action words? Broken, burst, flood, no warning, sudden.
Copper water pipes under slabs often fail from corrosion. If this is the case and they dig down to fix it, the fix probably won't be very good as the corrosion will be widespread and will probably happen again. Meanwhile they have destroyed a bunch of flooring. So it might be better to re-plumb. They might not cover a re-plumb, but they might pay you and let you decide how to deal with it.
The repair will be paid minus your deductible. Your rates might be affected later. So if the total repair only costs $1000. and your deductible is $2,000. You won't get a thing from insurance and they'll have a case number to refer to later. It might be best to just leave them out of it.
If you have a representative that you know well, you might ask him the best course of action and let him take over. This is often true with insurance guys in rural areas where everybody know him and are friends.
Just know the game the best you can going in so you don't trip yourself up.