@Matthew1163You always have the option to override your cancellation policy and refund the guest in full. When you receive a cancellation email, there's a link in the email that says "Refund guest in full". You just need to click the button and follow the steps.
Please bear in mind, though, that you are only able to refund your accommodations charges. You are not able to refund the Airbnb service fees. If the guest feels that they are due a refund for those fees under the Extenuating Circumstances policy, they would need to contact Airbnb and file a claim themselves.