Answers

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A butterfly's home this could be,
Or perhaps a master of the sea...

where might the captain live?

"skippers" (Skipper is a type of butterfly)
Skippers are a member of the Lepidoptera family (moths and butterflies) named the Hesperiidae. Being diurnal, they are generally called butterflies.  They are named for their quick, darting flight habits.
  Skippers. Skippers.
 Lulworth Skipper (pic by Mark Searle) Lulworth Skipper (pic by Mark Searle)
The Lulworth Skipper is one of our smallest UK butterflies, and its range is restricted to the south Dorset coast around Lulworth, and remains locally very abundant. In recent years the flight period of the Lulworth Skipper seems to have advanced significantly so that it can be encountered at any time from early June to mid-August. 
Continue up path to top. Turn left then bear right into Manor Road. E. 70m