I was reading a story today in nypost
http://www.nypost.com/news/regionalnews/65711.htm
and another similar story:
http://www.centredaily.com/mld/centredaily/news/politics/14145635.htm

Both claim that soon, NYC will brace for a major hurricane.  I was
wondering If I should get flood insurance.

My house is located 2 miles away from water, below is a location of the place.

http://maps.google.com/maps?f=q&hl=en&q=2400+east+28th+street,+brooklyn,+ny

I'de like to know why or why not, and how high is the risk, cost of
insurance would be around 400$ per year.

Based on your given address:

2400 east 28th street
brooklyn, NY 11235 

This property appears to be located in a moderate to low risk flood
zone. Buildings in these zones could be flooded by severe,
concentrated rainfall coupled with inadequate local drainage systems.
Flood insurance for these zones is available in communities
participating in the NFIP.

Enter your address (or any address) and the FEMA website will tell you
your flood risk.

http://www.floodsmart.gov/floodsmart/pages/riskassesment/findpropertyform.jsp;jsessionid=6941DD87DC194F4A44EB4E7EEB4CC3CE