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Refunding rent to a tenant originally paid by a third party?

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I wonder if anyone has had a similar situation? I had a tenant who's rent was paid by an insurance company as her own home was flooded. The tenancy was for 6 months and she moved out at the end, but the insurance company paid an extra months rent which I refunded back to the tenant. They are now asking me to repay it them. I'd be very grateful for any advice.

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