Help! Burst pipe and tenant DEMAND reimbursement

[Peace Lily]

Hi BP members, We had 2nd floor tenants went on vacation and they turned off their heat for one month, so this Monday the water pipe busted. The water gushed in into the hallway and basement. 30min later, another water pipe bursted on 2nd fl bathroom, the water was then streaming from the ceiling going down to the 1st floor another tenant’s bedroom( we caught right away and used the bucket to catch the water) which affected 1st floor tenant. We got emergency plumber came in within 2 hours and fixed the problem. Now the 1st floor tenant DEMANDED the reimbursement on her mattress topper, tempurpedic bed, bedsheets, and rug to be professionally cleaned ( her rug didn’t get wet but she said it was). She also demanded rent compensation since she couldn’t sleep in her bedroom. She then slept on the futon in the living room for a few days. We were sorry about what happened and disappointed and we, the landlord, are the victims as well. It all started from the 2nd floor tenants’s neglects. How do we respond to this? Do we just pay any amount she asked for? Can any experienced landlords help? Thank you all very much!