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. $3,000 is paid because the loss is not excluded.

C. $3,000 is paid under the property section and not the legal liability section.

D. $0 is paid due to the care, custody and control exclusion.