Is the lower appraisal price due to poorer condition or is it due to the market value of the boat being lower? If it's condition then negotiate a lower price after the survey. If it's market value then your offer may have been too high. In either case you can always re-negotiate the price based on the lower appraisal value. The seller is going to have the same problem with the next buyer, so he/she should be motivated to deal.
I don't know for sure what the lender will do - but I'd expect it would only be 80% of the appraised value.
In my experience the insurer covered the full purchase value of the vessel - which was the same as the appraisal value for my boat. There was a deductible (2%) of course - but that's standard practice. I'm not sure what they'd cover if you pay more than the appraisal.
Richard
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