Should HOA be resposible for rental loss caused by flood?

The HOA is not part of your lease agreement. You are responsible for your tenant. You are in the business of running your own business with your property. Property the HOA does not own nor leases.

You are entitled to the repairs the HOA is responsible for. They are not responsible for your rental income.

Take it up with your insurance carrier, hopefully, you have a business or rental rider on your policy. Or you can reach out to an attorney
and see if you have a case. Typically "businesses" can't use small claims courts only individuals can.

Read your CC&Rs insurance article to see if the HOA's insurance covers "loss of Use," e.g. owner unable to rent out their Unit. I'd be extremely surprised in the HOA coverage includes that. I believe that your only chance that the HOA insurance covers loss of use is if the HOA was negligent.

Are you sure your own HO6 policy does cover "loss of use," where it'd pay for lodging, meals for your own unit or others damaged by something in your unit? If you don't have that kind of coverage you and every multi-story condo owner should purchase it.

This sounds like a condo.

If so, there are two different types of master policy that condo communities can have. One is called "all included" and it can cover repairs for portions of the interiors of the home (although it will not cover any personal belongings - it's strictly things like cabinetry and flooring). The other type is "bare walls" insurance - the association is not responsible for repairs to the interior.

The CC&Rs/Declaration will tell you which type of insurance that this community carries. This isn't up for debate, the association has to carry the type listed in their CC&Rs - it's to prevent having any gaps in coverage. Individual owners have to provide a copy of their CC&Rs to their insurance agent when they buy their HO6 policies - again to prevent gaps in coverage.

The community manager/board can provide a certificate of coverage which shows what's covered and what the limits are.

I agree that it's unlikely that the master policy would provide for loss of rental income - that's typically on a homeowner's policy. Why should the neighbors pay for something like this since they do not benefit from it in any way? Renting out one's home is a personal decision, and facilitating it is not the function of a condo association.

I also agree that the insurers should fight this one out. One wrinkle, though: some boards may choose not to submit claims for losses that are close to the deductible amount. This is to help keep premiums down, which is a big issue right now.

If the cost of repairs is below the deductible, whoever is responsible for doing them would simply hire a contractor and get the work done. It's like your own insurance- the deductible is what you pay before insurance kicks in, so it's usually better to get the work done yourself and not file a claim, so it won't count against you.

If there's a question on whether you or the HOA is responsible for repairs that are under the deductible, you may have no choice, but to talk to a private attorney about your options. Most of us aren't attorneys and live in different states anyway, so what may be true in mine may not be the case in yours.

HOA claims full responsibility both times, and all repairs are on HOA. The second time they don't plan to file insurance. Even without insurance, HOA has operation cost collected from all homeowners including myself to pay for this. What shocked me is that the first time they did file insurance, which had to be in ten of thousands of dollars, but the repair in my unit was in thousands of dollars at most. I can't imagine how much money goes to the contractors. I feel HOA is facilitating the contractors to make huge profit from us. One time there was a project HOA tried hard but failed to push on us, and I ended up getting a contractor to do it myself with less than half amount HOA was trying to collect from me. The comparison indicates that HOA contractors would have made profit about 2 thirds of the amount because the contractor I hired had to make profit even though they only charged less than half amount of the fee.

What the association's insurance covers and what their legal liability is might be two different things. Have you read the association governing documents (CCRs, etc) to see if they specifically deny responsibility for loss of use? Either way, if the amount is significant, you could contact a lawyer to see if they think you have a case.