Agree. This is extremely cut and dry – something like this is a very rare occurrence, so you can afford to go absolutely above and beyond for your affected customer. For example, AirBnB changed their policy when a house was wrecked and now offers $50k guarantee they will make it right if something horrendous happens:
https://techcrunch.com/2011/08/01/airbnb-offers-unconditiona...
And think of instantly turning all this negative press positive. If I was Wag, I would have thrown money, time and personnel at this until the clients were satisfied.
It’s also the right thing to do.