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thames water, leak on shared supply!

i recieved a letter today telling me there was a water leek on a shared supply pipeline.
this line feeds 4 houses, due to the poor condition of the pipework they have offered to replace it for £150.00, they would also like me to pay another £150.00 for a byelaw breakthrough to my internal stop valve but this will only be carried out if necessary.

what is a byelaw breakthrough?
i will have to check my home insurrance to see if i am covered.
does £300 seem fiar for a leak which may not even be on my property?

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