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CA Home Under Repair

We were notified by our tenant that the toilet overflowed and they didn't notice for a few hours.  We have hired a plumber for the repair and hired a water mitigation service to extract the water.  The water mitigation service has pulled the wood flooring out of the master bedroom and hallway, the carpet out of a 2nd bedroom, and pieces of sheetrock in the master bedroom, and hallway.  The tenant is stating they need to stay in a hotel and they want us to pay the hotel bill.  Our insurance company has said that as long as the home is not uninhabitable they will not pay a hotel bill, the insurance company acknowledges it may be uncomfortable, but it is livable and therefore their choice to go to a hotel.  Total repairs could take 1 1/2 - 2 weeks.  Questions:  (property is located in CA) 1) Whose responsibility is it to pay the hotel bill?  Landlord or Tenant 2)  If they got to a hotel temporarily do they stop paying rent?  Thanks for your help!
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If the insurance claims the house is livable then the tenants can live there and if they choose to rent out a hotel room it would be on them to do so. You can write up a notice claiming the property livable from the insurance co. and that they are responsible for any hotel expenses if they so choose that option.
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