In reviewing our clients' insurance policies while preparing 2012 budgets, I'm finding that several smaller associations have policies with deductibles that are high for their size. The deductible is the amount that the association will pay toward any claim before the insurance policy will cover anything. A $2500 deductible may save a bit on insurance premiums, but if the association doesn't have a lot of funds in the bank to begin with, it will be difficult to cover a $2500 deductible when a claim is filed.
We generally recommend a $1000 deductible for small associations. Check with your insurance agent or broker to determine if you can minimize your deductible while keeping your premiums at a reasonable level.