I am not sure about the warranty, but

I think it's normal for water pumps to be changed out with the timing belt because you have to take off so so much stuff to get to it--including the t-belt. i changed the water pump with the t-belt on my honda for about $470 USD at the dealer at the recommended mileage interval (90k). i think we changed it with the t-belt on my 850. i'll check and get back to you.

I work for a dealer and although it'd be unusual to see one leaking at 70K miles (we rarely ever replace them), I'd think that it might be covered by VIP IF that's the "certified warranty" that you're talking about?

Anyway.....IF it is really leaking, although the labor to replace it would be less with the t-belt removed (as one's already there), there'd still be some labor charge as one must still R&R the pump and scrap off the old gasket to replace it so labor to do that would be additional to the T-belt (not free) yet less than doing the job normally while the t-belt's off.

Now................being that you obviously have your doubts or you wouldn't be posting this here asking about deemed criminal actions, why not simply go there and ask the service writer to show you the leaking water pump before it's replaced? If it's really leaking (seaping), they shouldn't have any problems showing you the pump while still on the car with the t-belt cover removed.
With any part that I condemn, I can prove it to anyone who asks at anytime as I have no need to make up BS and try selling parts that aren't really bad. There's plenty of real work out there so that any real, honest techs don't need to make up BS to make a living.

If the pump isn't really leaking but just has some slight evidence of minor seapage and isn't covered by VIP, then pass on the pump as it probably won't cause you any problems. I see pumps where there's slight evidence of minor seapage at what looks like a "freeze plug" (casting plug) but if it's not dripping coolant from the front cover under pressure (should be pressure tested to be sure), then I don't even mention it to the service writer as it's not a problem worth bothering with IMHO.

Its' not just dealers. My former independent (note former) recommended
replacing the water pump at the 70K timing belt change without even
looking at it (car was at 63K at the time).

I agree with former post that labour should be reduced since they are
already in there and no need to quote flat rate to replace the pump since
that includes time to get at it.

I don't know WHICH certified warranty you have, but today I needed to bring the fact that I had an extended warranty to the attention of the service advisor TWICE, and it was in their computer, too......

I'm almost at a point where I'm going to tape big red arrows on the car to point out problems before I bring it in for service.

I plan to do both the water pump and tensioner on mine with the 140,000 mile TB change.

-Punxsutawney Phil

As I related in an earlier post to someone else, dealerships follow rigid protocols to maintain profitability in their high-overhead operation. Sounds like they want to charge you full retail (book price) for both the T-belt and the water pump repair. Also, they should be changing the serpentine accessory belt at this time too.

If the pump repair is not covered under the extended warranty (why shouldn't it be?) why not call an independent Volvo specialist and get a competitive quote. They have much more latitude when it comes to pricing the work and won't charge you duplicate for overlapping tasks.

The dealership will no doubt do a good job, but you'll definitely pay them more.
--
(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)

I was in the same situation with my 95 850T and it cost me about $200 extra. The timing belt drives the water pump and I did not see any leaks either but was shown how it was seeping from the weep hole. If the water pump goes completely, it will also take out the timing belt, which in turn will take out your engine by bending valves. So in the big picture that is cheap compared to the alternative.

This seems a little high especially since they are already in there replacing the timing belt. The additional incremetal work for the water pump is the draining of the coolant, removing the water pump and gasket, cleaning off the old gasket, replacing with new pump and gasket, and bolting it back together. I have a hard time imagining more than maybe an extra hour of labor on top of what they are already doing for the belt. I don't know for sure though.
Sounds like they may be calculating the cost as 2 independent jobs and double counting the r&r of the t-belt. The biggest part of this job is the r&r of the t-belt which you are already paying for. Not sure about the certified warranty though it sounds like it should be covered. Hope that helps.