1) Legally you may rent out your own land so long as your municipal zoning laws do not preclude the intended use; the best way way to know what is or is not allowed would be to speak with the building or clerk's office at your town or city hall first, then double check by reviewing the appropriate ordinances (which they can point you to)--ideally with an attorney's help, but you could do this yourself.
2) It is almost certainly the case that your current homeowner's insurance would not cover commercial activities on your land. Homeowner's insurance generally only covers residential uses; you can and should double check the policy (the policy is a contract; it covers exactly what it says it does), but it is likely you will need to buy different or additional insurance.
The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you go to AttorneyPages.com
and retain an attorney to represent you.