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need advice on replacing '97 960 volvo engine 900 1997

hello, I bought a 97 volvo wagon 3 months ago (at 92K miles) and the service records showed the timing belt replaced at 69K miles. However the timing belt tensioner came off at 97K miles and bent 1 or 2 piston rods and the dealer says the engine needs to be replaced since the engine won't start.

Would rebuilding the engine OR replacing it be recommended in this case? How many hrs of labor would be required so that I know that the mechanic is giving me a good estimate? Why did the tensioner come off when the timing belt was replaced? How long do 960 engines usually go for?
Any recommendations for a good volvo engine mechanic in the seattle area?

Any advice would be appreciated since we've never had to maintain a volvo before (been mostly japanese cars) and it's been quite a lot of work and $ besides.
Thanks!






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