Help tenant caused fire now wants out of lease?

[Sacha LaCoss]

Home located in Albuquerque current lease through May 2020

Tenants dog caused a fire by dragging a pillow over a gas floor heater 

Gas meter was pulled as the fire melted the safety cut off valve to the gas heater where the fire was. 

Tenant has renters insurance and I have home insurance through same company

My agent says he has spoken  to tenants agent and they will be subrogating  my claim to her liability  insurance when all is said and done. 

I’m still in 5e getting quotes phase and mitigation company told tenants probably 2 months till all repairs are done. 

Tenants insurance covers her place to live and covers our lost rent while repairs are done. 
Tenant emails me wanting out of the lease as she can’t pay rent on a place she can’t live in (which she won’t be nor will she be paying for her temporary living as far as I understand it.) 

  Our lease does say “if the whole or any part of the leased premises is taken over by any authority having power of condemnation, this lease agreement will end.  The tenant however is responsible for all rent and charges until such time that tenant vacates the leased premises” 

I just want to understand what I have to do in this situation-

Help! 

[Jeff Willis]

There is an Implied Warranty of Habitability. I know, the fire was their fault, BUT that does not waive that implied warranty. Any loss of rent until the place is repaired, you should submit to their insurance company along with the fire damages.

If she wants out of the lease that only has a few months to go, easier to let her out