Beverly Has an HO-3 Contract with a $100,000 Per Occurrence

Beverly has an HO-3 contract with a $100,000 per occurrence limit on the Liability coverage. She rents out her basement to a college student, and the student's personal property is damaged by Beverly's negligence. The student sues her for $3,000. How much will the HO policy pay for this loss?

A) $0 is paid because this liability is excluded.
B) $0 is paid due to the care, custody and control exclusion.
C) $3,000 is paid because the loss is not excluded.
D) $3,000 is paid under the property section and not the legal liability section.