Do things that animate have to be Characters?

or can you have animation on an actor?

@SirYakalot:

It depens on what you mean with “Animation”. You can move actors with timelines. For example a door like the one in the Tutorial series.

But if you talk about Animations that are some kind of deformation to the mesh, then you will need a SkeletalMesh. Because the Animations are driven by Bones from the 3D Software. These bones are mapped to parts of the mesh, like the fingers. And only the SkeletalMesh is capable of using and converting those bones.

If you’re talking about skeletal animation, then it could be any actor with mesh component that supports skeletal animation. There are few that support skeletons, but AFAIK only one could play animations - Skeletal Mesh Component.