If you refuse to pay, the claimant has a right to appeal to the Tribunal and your " policy" will be irrelevant.
You do not have the power to "coerce" a landlord to waive a contractual liability that the claimant has so what you have to do is look at the situation objectively and make a judgment as to whether the claimant did everything she reasonably could to avoid the dual liability.
If you ask that question of the claimant and the awswer to that question is that she did everything she could, then you have no choice but to pay for 2 homes
