The timing chain is covered by the clause about lubricated internal engine parts. They listed generic timing belts separately since those aren't lubricated.

A lot of money for basic engine and transmission coverage. Only you can decide if it is worth it, but I would be thinking self-insurance, myself. Take the $2000 and put it aside for future repairs.

You say that your engine was already changed? And the transmission was already rebuilt? You likely aren't getting any reduction in the premium for those repairs, so I would say you won't come out ahead on this.

Don't rely on the clause about manufacturer's service recommendations taking precendence over the four month oil change requirement. They will require you to change your oil every four months and can use that to not pay out. See if they will remove that clause if you want to go ahead with it.

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2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue