A wet exhaust uses seawater to cool the exhaust so it can run through rubber hose. That's fine as long as the water keeps flowing. When it stops, or when the hose ages, the exhaust system leaks water into the bilge or carbon monoxide into the boat.
How a surveyor checks it
The whole run. Follow the hose from the injection elbow to the transom outlet. Southern Boating's list: leaks, kinks, chafe, bulging at the hose clamps, cracks and other signs of deterioration. Power & Motoryacht adds discoloured sections, which can mean overheating, worn spots where the hose rubs on structure, and broken hangers.
Engine off and running. Southern Boating notes some leaks only show with the engine running. Sail magazine's tip for gas leaks: look for black soot.
Feel it. Squeeze along the hose for soft spots, especially near the elbow where it's hottest.
The markings. Hose should be labelled for marine wet exhaust. Southern Boating says anything more than a short run, four times the inside diameter, should be wire reinforced, and every connection should be to a rigid component. Hose slipped over hose and clamped is not acceptable.
The clamps. Power & Motoryacht: replace corroded clamps with 316 stainless, screw included, and double clamp every hose. Southern Boating notes double clamping only works where the barb is long enough.
The muffler. Drain plugs on waterlift mufflers sometimes back out after winterising, letting water and exhaust into the boat. Check they're in and tight.
What decides the grade
Gas or water escaping, or a hose cooked by a cooling failure, is an A: the engine shouldn't run. Cracking, soft spots and corroded clamps are B. Clamping and marking points on sound hose are C.