She is entitled to her bond, the article is poorly written, so who knows if she has had it refunded.
Not the landlords responsibility to look after her, he can't conjure up a house for her to rent.
I would have thought insurance would play a part in this, assuming he used a proper builder. I have had work done around tenants and never had an issue. Depending on what was being done, I would drop the rent say 25-30% a week until complete. Tenants were always happy with that. Last time I concreted the driveway and they couldn't drive on it for a week, halved the rent for the week as they had to park on the road and we had a long driveway.