It is important to take out appropriate insurance. This is because in the unlikely event that a user starts a fire, the fire insurance will not cover it and the owner may suffer heavy damages.
For example, when you operate your vacation home as a private lodging property, you will have an unspecified number of people staying at the property. Therefore, in most cases, it would be difficult for normal homeowner's insurance to cover a fire caused by a guest staying at the property.
If you are planning to rent out your vacation home for a short period of time or use it as a private lodging business, be sure to check with your insurance company or property management company beforehand to find out what kind of insurance you need to purchase.