Insurance coverage confusion

We are on a pet sit where the owner canceled their trip after we arrived. I told the owner she had to cancel for our insurance to cover new accommodations. After she contacted THS to cancel, I received an email I had to also agree to canceling the sit. However, the email and insurance guidelines both state that if I agree to cancel, I am not eligible for the insurance coverage.

I am extremely confused and frustrated. I have been trying to get help since Wednesday and with it now being the weekend, I am doubtful of getting resolution to our very uncomfortable situation we have endured for several days.

I also cannot find what is the consequence to a home owner or pet sitter if they break the code of conduct? Are they banned from the platform? If the sit is canceled and no reviews happen, how are people to know this is not a reliable home owner or pet sitter?