Here in Western Mass we do have very cold temps and the ground can freeze up to 4’ down. So all water pipes are run in trenches 4’ down. They enter the house at that level also.
It’s too bad that they don’t build to what could happen, only to what has happened. It’s really hard to rectify after the house is built.
And for homeowners with little margin, like you and I, it can mean a disaster. So it was really fortunate you were there and caught it!
Part of the problem around here is mostly related to sloppy construction. They will do everything completely correctly and winter safe all the way from the street to within a couple of feet of the house.
Then all that good work goes to waste because they choose to route the incoming pipe through an open wood crawl space that gets well below freezing to a spot where it goes safely into the house with proper insulation. Except for the fact that 18 inches of pipe is exposed to the elements. Well duh!
Sounds like a homeowners insurance will at least cover some of it, but there's $1,000 deductible. Oh well...
Sigh... I worry about this exact thing with my sister's rented house in NM...