tl;dr The fix is to increase the surface area of the contacts on the Shelly Flood sensor. See photo of fix, below.
Simple test: Put sensor contacts on a metal ruler (or other sheet metal) and it should definitely alarm.
Simple test 2: Put 3 coins (eg. US quarters = 25 cents) on a plate: One coin underneath each of the 3 metal contact points on the sensor. Place sensor on the 3 coins. Pour water on the plate. When water is touching all 3 coins (or perhaps 2 coins), sensor should alarm.
My tap water is pretty soft. It measures about 20 with a TDS (Total Dissolved Solids) meter. As such, the Shelly Flood sensor does NOT trigger/alarm when it gets wet. This means if there was a water leak, like a busted hose on the washing machine, the sensor would not fire and I would not get a notification. Very bad.
After some conversation on the Shelly support group on Facebook, I learned: If there aren’t enough minerals in the water, then there won’t be enough conductivity for the sensor to trigger. This is a known issue with the Shelly Flood.
Workaround is to increase the surface / contact area of the sensor’s contacts. Shelly said they are working on an add-on part that would solve this problem. But why wait? And their future mod may not be so great.
My fix: After soldering on some coiled bare wire (each about 7cm long), sensor alarms immediately with just 10ml (1 tablespoon) of water.

Pretty damn smart. I’ll be trying this myself! Thank you!