I am thinking most extended warranty companies will NOT pay for this repair as an upgrade for prevention, some *might* cover it IF it breaks. I would doubt many would though. We deal with extended warranty companies all the time, most of them are a joke and just suck money from you for no good reason.
The last 3 issues we had come through that were NOT covered:
BMW inline 6 cylinder breather upgrade, these freeze up and allow the crankcase pressure to build up so high as to fracture the plastic valve cover, which is what happened on this X5 in the single digit weather we had.
Passat W8 engine, left cam phaser stuck full advanced, so left bank's intake valves are open WAY sooner than they should be at lower RPMs, car is virtually undriveable and it requires engine removal to fix.
Toyota 1AZ-FE engine head bolts strip out of the cylinder block, causing a nice coolant leak that looks like a simple head gasket, only to find upon disassembly the block has little to no head bolt threads left in it, and requires a new block
.
Basically, in every case, the engine pretty much needs to have a 'failure of an internally lubricated part' which means the sucker almost has to throw a rod out the side of the block.
Now in the case of the BHW, technically the chain drives the oil pump, and usually 'oil pump' is in fact listed as a covered item. But I cannot make that decision.