It doesn't look like that element is grounded, so grounding the kettle or the heater and using a gfci might be a good idea.
Also, I know from experience that even though the handle i molded, it is far from water proof. Moisture can quite easily creep in (even from steam) and I wouldn't be surprised if that is what happened to @DarkStarNJ .
Lastly, heating elements usually bend pretty easily, so I'd suggest carefully bending it to a hook near the handle. That way you can just hang it off the kettle wall, and steam will not reach the handle.