i believe you can still hydrolock if its a small trickle of water getting up there. i mean if enough gets up there. so yea if you're like driving in a heavy rainstorm for many hours you might run into some problems. if this is what your'e worried about, k&n sells a prefilter. its like a lil jacket for your filter. it will still let the air in but won't let the water.
but if your worried about dunking the filter then you might look into the bypass valve
another thing, i was reading on the Injen
website that if you do have a bypass valve, your Intake
won't meet CARB's restrictions. so if you have it on you might want to take it off for inspections