Broken weather head
Yes, this is a strange one I do not get to see to often. The weather head is there to stop rain water from getting down into the cable where somehow it seems always to find a path to someplace water should not be.
Sometimes this defect will allow rain water to get right onto the contacts within the electric meter pan socket causing rust, corrosion and creating high impedance connections that can heat up enough to cause power disruptions and even a house fire. Since home inspectors do not have the tools necessary to remove electric meters or especially since we are not allowed to break electric company anti tamper seals one must have PSE&G come out at the same time as a Licensed Electrical Contractor to determine the scope and cost of curing the existing hazard based upon the extent o damages.
Often water from the very top of the service entrance will get right inside the electric panel causing rusted, corroded and unsafe conditions inside the panel. Often the service entrance cable from the electric panel up to the top of the home must be removed and replaced including the electric panel, meter pan and socket. Repairs like this can be in the low thousands of dollars. Since there is a real risk of fire or electric shock it is not wise to ignore these problems and hazards.
Broken weather heads are a hazard that requires corrective actions even if other parties to the transaction say it is not a problem.