Hot/dry exhaust installation
Especially with a gasoline engine you would want a wet system if you can manage it. Unless the engine is well below the waterline a wetlift is the way to go. Dry exhausts are fire hazards.
A dry exhaust are common on trawlers with the stacks comming straight up thru the deck and is insulated with another pipe surrounding it, which is air cooled.
I''d recommend properly redoing the wet system.
And what kind of vessel is this that came with a dry exhaust?