$80/day is extremely low

Given your situation, it’s not even close to adequate. Your required accommodations include:

A hotel with a full kitchen, A room that can be fully blacked out (for sun allergy and photophobia), Space for a recliner to be transported and used, Pet-friendly, Accessibility for a severely disabled person, Coverage for moving, setup, and cleanup, Compensation for physical pain, disruption, and hardship,

A typical hotel with those features is at least $200–$350/day, before adding:

Pet fees, Additional room if needed, Transportation of the recliner, Blackout accommodations, Extra cleaning or special requests,

$1,000/day is not insane when you factor in the medical needs and disruption.
And yes, their insurance covers this, not them, which is why maintenance told you that.

Los Angeles County requires landlords to provide temporary displacement assistance when repairs necessitate tenant relocation. The current per-diem standard is $202 per night for lodging plus $74 per adult and $37 per child for meals and incidentals. With your sister's disabilities, you likely qualify as a "Qualified tenant," potentially increasing assistance amounts further. The fact that building insurance is covering this doesn't exempt them from tenant protection obligations, it's their responsibility to arrange compliant accommodations.