diff --git a/.coveragerc b/.coveragerc
index 989830e5c9d..62f710f3680 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -136,12 +136,13 @@ omit =
 
     homeassistant/components/ihc/*
     homeassistant/components/*/ihc.py
+    
+    homeassistant/components/insteon/*
+    homeassistant/components/*/insteon.py
 
     homeassistant/components/insteon_local.py
-    homeassistant/components/*/insteon_local.py
-
-    homeassistant/components/insteon_plm/*
-    homeassistant/components/*/insteon_plm.py
+    
+    homeassistant/components/insteon_plm.py
 
     homeassistant/components/ios.py
     homeassistant/components/*/ios.py
diff --git a/homeassistant/components/binary_sensor/insteon_plm.py b/homeassistant/components/binary_sensor/insteon.py
similarity index 76%
rename from homeassistant/components/binary_sensor/insteon_plm.py
rename to homeassistant/components/binary_sensor/insteon.py
index 25fc3fb5d73..789ad894a41 100644
--- a/homeassistant/components/binary_sensor/insteon_plm.py
+++ b/homeassistant/components/binary_sensor/insteon.py
@@ -2,15 +2,15 @@
 Support for INSTEON dimmers via PowerLinc Modem.
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/binary_sensor.insteon_plm/
+https://home-assistant.io/components/binary_sensor.insteon/
 """
 import asyncio
 import logging
 
 from homeassistant.components.binary_sensor import BinarySensorDevice
-from homeassistant.components.insteon_plm import InsteonPLMEntity
+from homeassistant.components.insteon import InsteonEntity
 
-DEPENDENCIES = ['insteon_plm']
+DEPENDENCIES = ['insteon']
 
 _LOGGER = logging.getLogger(__name__)
 
@@ -24,27 +24,27 @@ SENSOR_TYPES = {'openClosedSensor': 'opening',
 
 @asyncio.coroutine
 def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
-    """Set up the INSTEON PLM device class for the hass platform."""
-    plm = hass.data['insteon_plm'].get('plm')
+    """Set up the INSTEON device class for the hass platform."""
+    insteon_modem = hass.data['insteon'].get('modem')
 
     address = discovery_info['address']
-    device = plm.devices[address]
+    device = insteon_modem.devices[address]
     state_key = discovery_info['state_key']
     name = device.states[state_key].name
     if name != 'dryLeakSensor':
         _LOGGER.debug('Adding device %s entity %s to Binary Sensor platform',
                       device.address.hex, device.states[state_key].name)
 
-        new_entity = InsteonPLMBinarySensor(device, state_key)
+        new_entity = InsteonBinarySensor(device, state_key)
 
         async_add_devices([new_entity])
 
 
-class InsteonPLMBinarySensor(InsteonPLMEntity, BinarySensorDevice):
+class InsteonBinarySensor(InsteonEntity, BinarySensorDevice):
     """A Class for an Insteon device entity."""
 
     def __init__(self, device, state_key):
-        """Initialize the INSTEON PLM binary sensor."""
+        """Initialize the INSTEON binary sensor."""
         super().__init__(device, state_key)
         self._sensor_type = SENSOR_TYPES.get(self._insteon_device_state.name)
 
diff --git a/homeassistant/components/fan/insteon_plm.py b/homeassistant/components/fan/insteon.py
similarity index 86%
rename from homeassistant/components/fan/insteon_plm.py
rename to homeassistant/components/fan/insteon.py
index 0911295d090..62fa48935ec 100644
--- a/homeassistant/components/fan/insteon_plm.py
+++ b/homeassistant/components/fan/insteon.py
@@ -2,7 +2,7 @@
 Support for INSTEON fans via PowerLinc Modem.
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/fan.insteon_plm/
+https://home-assistant.io/components/fan.insteon/
 """
 import asyncio
 import logging
@@ -14,9 +14,9 @@ from homeassistant.components.fan import (SPEED_OFF,
                                           FanEntity,
                                           SUPPORT_SET_SPEED)
 from homeassistant.const import STATE_OFF
-from homeassistant.components.insteon_plm import InsteonPLMEntity
+from homeassistant.components.insteon import InsteonEntity
 
-DEPENDENCIES = ['insteon_plm']
+DEPENDENCIES = ['insteon']
 
 SPEED_TO_HEX = {SPEED_OFF: 0x00,
                 SPEED_LOW: 0x3f,
@@ -30,22 +30,22 @@ _LOGGER = logging.getLogger(__name__)
 
 @asyncio.coroutine
 def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
-    """Set up the INSTEON PLM device class for the hass platform."""
-    plm = hass.data['insteon_plm'].get('plm')
+    """Set up the INSTEON device class for the hass platform."""
+    insteon_modem = hass.data['insteon'].get('modem')
 
     address = discovery_info['address']
-    device = plm.devices[address]
+    device = insteon_modem.devices[address]
     state_key = discovery_info['state_key']
 
     _LOGGER.debug('Adding device %s entity %s to Fan platform',
                   device.address.hex, device.states[state_key].name)
 
-    new_entity = InsteonPLMFan(device, state_key)
+    new_entity = InsteonFan(device, state_key)
 
     async_add_devices([new_entity])
 
 
-class InsteonPLMFan(InsteonPLMEntity, FanEntity):
+class InsteonFan(InsteonEntity, FanEntity):
     """An INSTEON fan component."""
 
     @property
diff --git a/homeassistant/components/fan/insteon_local.py b/homeassistant/components/fan/insteon_local.py
deleted file mode 100644
index 28b93c86ed7..00000000000
--- a/homeassistant/components/fan/insteon_local.py
+++ /dev/null
@@ -1,107 +0,0 @@
-"""
-Support for Insteon fans via local hub control.
-
-For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/fan.insteon_local/
-"""
-import logging
-from datetime import timedelta
-
-from homeassistant import util
-from homeassistant.components.fan import (
-    ATTR_SPEED, SPEED_OFF, SPEED_LOW, SPEED_MEDIUM, SPEED_HIGH,
-    SUPPORT_SET_SPEED, FanEntity)
-
-_CONFIGURING = {}
-_LOGGER = logging.getLogger(__name__)
-
-DEPENDENCIES = ['insteon_local']
-DOMAIN = 'fan'
-
-MIN_TIME_BETWEEN_FORCED_SCANS = timedelta(milliseconds=100)
-MIN_TIME_BETWEEN_SCANS = timedelta(seconds=5)
-
-SUPPORT_INSTEON_LOCAL = SUPPORT_SET_SPEED
-
-
-def setup_platform(hass, config, add_devices, discovery_info=None):
-    """Set up the Insteon local fan platform."""
-    insteonhub = hass.data['insteon_local']
-    if discovery_info is None:
-        return
-
-    linked = discovery_info['linked']
-    device_list = []
-    for device_id in linked:
-        if (linked[device_id]['cat_type'] == 'dimmer' and
-                linked[device_id]['sku'] == '2475F'):
-            device = insteonhub.fan(device_id)
-            device_list.append(
-                InsteonLocalFanDevice(device)
-            )
-
-    add_devices(device_list)
-
-
-class InsteonLocalFanDevice(FanEntity):
-    """An abstract Class for an Insteon node."""
-
-    def __init__(self, node):
-        """Initialize the device."""
-        self.node = node
-        self._speed = SPEED_OFF
-
-    @property
-    def name(self):
-        """Return the name of the node."""
-        return self.node.device_id
-
-    @property
-    def unique_id(self):
-        """Return the ID of this Insteon node."""
-        return self.node.device_id
-
-    @property
-    def speed(self) -> str:
-        """Return the current speed."""
-        return self._speed
-
-    @property
-    def speed_list(self) -> list:
-        """Get the list of available speeds."""
-        return [SPEED_OFF, SPEED_LOW, SPEED_MEDIUM, SPEED_HIGH]
-
-    @util.Throttle(MIN_TIME_BETWEEN_SCANS, MIN_TIME_BETWEEN_FORCED_SCANS)
-    def update(self):
-        """Update state of the fan."""
-        resp = self.node.status()
-        if 'cmd2' in resp:
-            if resp['cmd2'] == '00':
-                self._speed = SPEED_OFF
-            elif resp['cmd2'] == '55':
-                self._speed = SPEED_LOW
-            elif resp['cmd2'] == 'AA':
-                self._speed = SPEED_MEDIUM
-            elif resp['cmd2'] == 'FF':
-                self._speed = SPEED_HIGH
-
-    @property
-    def supported_features(self):
-        """Flag supported features."""
-        return SUPPORT_INSTEON_LOCAL
-
-    def turn_on(self, speed: str = None, **kwargs) -> None:
-        """Turn device on."""
-        if speed is None:
-            speed = kwargs.get(ATTR_SPEED, SPEED_MEDIUM)
-
-        self.set_speed(speed)
-
-    def turn_off(self, **kwargs) -> None:
-        """Turn device off."""
-        self.node.off()
-
-    def set_speed(self, speed: str) -> None:
-        """Set the speed of the fan."""
-        if self.node.on(speed):
-            self._speed = speed
diff --git a/homeassistant/components/insteon_plm/__init__.py b/homeassistant/components/insteon/__init__.py
similarity index 73%
rename from homeassistant/components/insteon_plm/__init__.py
rename to homeassistant/components/insteon/__init__.py
index 055015b74f5..212cdbac3b8 100644
--- a/homeassistant/components/insteon_plm/__init__.py
+++ b/homeassistant/components/insteon/__init__.py
@@ -1,8 +1,8 @@
 """
-Support for INSTEON PowerLinc Modem.
+Support for INSTEON Modems (PLM and Hub).
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/insteon_plm/
+https://home-assistant.io/components/insteon/
 """
 import asyncio
 import collections
@@ -12,18 +12,24 @@ import voluptuous as vol
 from homeassistant.core import callback
 from homeassistant.const import (CONF_PORT, EVENT_HOMEASSISTANT_STOP,
                                  CONF_PLATFORM,
-                                 CONF_ENTITY_ID)
+                                 CONF_ENTITY_ID,
+                                 CONF_HOST)
 import homeassistant.helpers.config_validation as cv
 from homeassistant.helpers import discovery
 from homeassistant.helpers.entity import Entity
 
-REQUIREMENTS = ['insteonplm==0.11.7']
+REQUIREMENTS = ['insteonplm==0.12.3']
 
 _LOGGER = logging.getLogger(__name__)
 
-DOMAIN = 'insteon_plm'
+DOMAIN = 'insteon'
 
+CONF_IP_PORT = 'ip_port'
+CONF_HUB_USERNAME = 'username'
+CONF_HUB_PASSWORD = 'password'
 CONF_OVERRIDE = 'device_override'
+CONF_PLM_HUB_MSG = ('Must configure either a PLM port or a Hub host, username '
+                    'and password')
 CONF_ADDRESS = 'address'
 CONF_CAT = 'cat'
 CONF_SUBCAT = 'subcat'
@@ -56,8 +62,8 @@ HOUSECODES = ['a', 'b', 'c', 'd', 'e', 'f', 'g', 'h',
               'i', 'j', 'k', 'l', 'm', 'n', 'o', 'p']
 
 BUTTON_PRESSED_STATE_NAME = 'onLevelButton'
-EVENT_BUTTON_ON = 'insteon_plm.button_on'
-EVENT_BUTTON_OFF = 'insteon_plm.button_off'
+EVENT_BUTTON_ON = 'insteon.button_on'
+EVENT_BUTTON_OFF = 'insteon.button_off'
 EVENT_CONF_BUTTON = 'button'
 
 CONF_DEVICE_OVERRIDE_SCHEMA = vol.All(
@@ -79,17 +85,34 @@ CONF_X10_SCHEMA = vol.All(
         }))
 
 CONFIG_SCHEMA = vol.Schema({
-    DOMAIN: vol.Schema({
-        vol.Required(CONF_PORT): cv.string,
-        vol.Optional(CONF_OVERRIDE): vol.All(
-            cv.ensure_list_csv, [CONF_DEVICE_OVERRIDE_SCHEMA]),
-        vol.Optional(CONF_X10_ALL_UNITS_OFF): vol.In(HOUSECODES),
-        vol.Optional(CONF_X10_ALL_LIGHTS_ON): vol.In(HOUSECODES),
-        vol.Optional(CONF_X10_ALL_LIGHTS_OFF): vol.In(HOUSECODES),
-        vol.Optional(CONF_X10): vol.All(
-            cv.ensure_list_csv, [CONF_X10_SCHEMA])
-        })
-}, extra=vol.ALLOW_EXTRA)
+    DOMAIN: vol.All(
+        vol.Schema(
+            {vol.Exclusive(CONF_PORT, 'plm_or_hub',
+                           msg=CONF_PLM_HUB_MSG): cv.isdevice,
+             vol.Exclusive(CONF_HOST, 'plm_or_hub',
+                           msg=CONF_PLM_HUB_MSG): cv.string,
+             vol.Optional(CONF_IP_PORT, default=25105): int,
+             vol.Optional(CONF_HUB_USERNAME): cv.string,
+             vol.Optional(CONF_HUB_PASSWORD): cv.string,
+             vol.Optional(CONF_OVERRIDE): vol.All(
+                 cv.ensure_list_csv, [CONF_DEVICE_OVERRIDE_SCHEMA]),
+             vol.Optional(CONF_X10_ALL_UNITS_OFF): vol.In(HOUSECODES),
+             vol.Optional(CONF_X10_ALL_LIGHTS_ON): vol.In(HOUSECODES),
+             vol.Optional(CONF_X10_ALL_LIGHTS_OFF): vol.In(HOUSECODES),
+             vol.Optional(CONF_X10): vol.All(cv.ensure_list_csv,
+                                             [CONF_X10_SCHEMA])
+             }, extra=vol.ALLOW_EXTRA, required=True),
+        cv.has_at_least_one_key(CONF_PORT, CONF_HOST),
+        vol.Schema(
+            {vol.Inclusive(CONF_HOST, 'hub',
+                           msg=CONF_PLM_HUB_MSG): cv.string,
+             vol.Inclusive(CONF_HUB_USERNAME, 'hub',
+                           msg=CONF_PLM_HUB_MSG): cv.string,
+             vol.Inclusive(CONF_HUB_PASSWORD, 'hub',
+                           msg=CONF_PLM_HUB_MSG): cv.string,
+             }, extra=vol.ALLOW_EXTRA, required=True))
+    }, extra=vol.ALLOW_EXTRA)
+
 
 ADD_ALL_LINK_SCHEMA = vol.Schema({
     vol.Required(SRV_ALL_LINK_GROUP): vol.Range(min=0, max=255),
@@ -116,14 +139,18 @@ X10_HOUSECODE_SCHEMA = vol.Schema({
 
 @asyncio.coroutine
 def async_setup(hass, config):
-    """Set up the connection to the PLM."""
+    """Set up the connection to the modem."""
     import insteonplm
 
     ipdb = IPDB()
-    plm = None
+    insteon_modem = None
 
     conf = config[DOMAIN]
     port = conf.get(CONF_PORT)
+    host = conf.get(CONF_HOST)
+    ip_port = conf.get(CONF_IP_PORT)
+    username = conf.get(CONF_HUB_USERNAME)
+    password = conf.get(CONF_HUB_PASSWORD)
     overrides = conf.get(CONF_OVERRIDE, [])
     x10_devices = conf.get(CONF_X10, [])
     x10_all_units_off_housecode = conf.get(CONF_X10_ALL_UNITS_OFF)
@@ -131,7 +158,7 @@ def async_setup(hass, config):
     x10_all_lights_off_housecode = conf.get(CONF_X10_ALL_LIGHTS_OFF)
 
     @callback
-    def async_plm_new_device(device):
+    def async_new_insteon_device(device):
         """Detect device from transport to be delegated to platform."""
         for state_key in device.states:
             platform_info = ipdb[device.states[state_key]]
@@ -143,7 +170,7 @@ def async_setup(hass, config):
                         _fire_button_on_off_event)
 
                 else:
-                    _LOGGER.info("New INSTEON PLM device: %s (%s) %s",
+                    _LOGGER.info("New INSTEON device: %s (%s) %s",
                                  device.address,
                                  device.states[state_key].name,
                                  platform)
@@ -160,12 +187,12 @@ def async_setup(hass, config):
         group = service.data.get(SRV_ALL_LINK_GROUP)
         mode = service.data.get(SRV_ALL_LINK_MODE)
         link_mode = 1 if mode.lower() == SRV_CONTROLLER else 0
-        plm.start_all_linking(link_mode, group)
+        insteon_modem.start_all_linking(link_mode, group)
 
     def del_all_link(service):
         """Delete an INSTEON All-Link between two devices."""
         group = service.data.get(SRV_ALL_LINK_GROUP)
-        plm.start_all_linking(255, group)
+        insteon_modem.start_all_linking(255, group)
 
     def load_aldb(service):
         """Load the device All-Link database."""
@@ -194,22 +221,22 @@ def async_setup(hass, config):
         """Print the All-Link Database for a device."""
         # For now this sends logs to the log file.
         # Furture direction is to create an INSTEON control panel.
-        print_aldb_to_log(plm.aldb)
+        print_aldb_to_log(insteon_modem.aldb)
 
     def x10_all_units_off(service):
         """Send the X10 All Units Off command."""
         housecode = service.data.get(SRV_HOUSECODE)
-        plm.x10_all_units_off(housecode)
+        insteon_modem.x10_all_units_off(housecode)
 
     def x10_all_lights_off(service):
         """Send the X10 All Lights Off command."""
         housecode = service.data.get(SRV_HOUSECODE)
-        plm.x10_all_lights_off(housecode)
+        insteon_modem.x10_all_lights_off(housecode)
 
     def x10_all_lights_on(service):
         """Send the X10 All Lights On command."""
         housecode = service.data.get(SRV_HOUSECODE)
-        plm.x10_all_lights_on(housecode)
+        insteon_modem.x10_all_lights_on(housecode)
 
     def _register_services():
         hass.services.register(DOMAIN, SRV_ADD_ALL_LINK, add_all_link,
@@ -231,11 +258,11 @@ def async_setup(hass, config):
         hass.services.register(DOMAIN, SRV_X10_ALL_LIGHTS_ON,
                                x10_all_lights_on,
                                schema=X10_HOUSECODE_SCHEMA)
-        _LOGGER.debug("Insteon_plm Services registered")
+        _LOGGER.debug("Insteon Services registered")
 
     def _fire_button_on_off_event(address, group, val):
         # Firing an event when a button is pressed.
-        device = plm.devices[address.hex]
+        device = insteon_modem.devices[address.hex]
         state_name = device.states[group].name
         button = ("" if state_name == BUTTON_PRESSED_STATE_NAME
                   else state_name[-1].lower())
@@ -250,13 +277,23 @@ def async_setup(hass, config):
                       event, address.hex, button)
         hass.bus.fire(event, schema)
 
-    _LOGGER.info("Looking for PLM on %s", port)
-    conn = yield from insteonplm.Connection.create(
-        device=port,
-        loop=hass.loop,
-        workdir=hass.config.config_dir)
+    if host:
+        _LOGGER.info('Connecting to Insteon Hub on %s', host)
+        conn = yield from insteonplm.Connection.create(
+            host=host,
+            port=ip_port,
+            username=username,
+            password=password,
+            loop=hass.loop,
+            workdir=hass.config.config_dir)
+    else:
+        _LOGGER.info("Looking for Insteon PLM on %s", port)
+        conn = yield from insteonplm.Connection.create(
+            device=port,
+            loop=hass.loop,
+            workdir=hass.config.config_dir)
 
-    plm = conn.protocol
+    insteon_modem = conn.protocol
 
     for device_override in overrides:
         #
@@ -265,32 +302,32 @@ def async_setup(hass, config):
         address = device_override.get('address')
         for prop in device_override:
             if prop in [CONF_CAT, CONF_SUBCAT]:
-                plm.devices.add_override(address, prop,
-                                         device_override[prop])
+                insteon_modem.devices.add_override(address, prop,
+                                                   device_override[prop])
             elif prop in [CONF_FIRMWARE, CONF_PRODUCT_KEY]:
-                plm.devices.add_override(address, CONF_PRODUCT_KEY,
-                                         device_override[prop])
+                insteon_modem.devices.add_override(address, CONF_PRODUCT_KEY,
+                                                   device_override[prop])
 
     hass.data[DOMAIN] = {}
-    hass.data[DOMAIN]['plm'] = plm
+    hass.data[DOMAIN]['modem'] = insteon_modem
     hass.data[DOMAIN]['entities'] = {}
 
     hass.bus.async_listen_once(EVENT_HOMEASSISTANT_STOP, conn.close)
 
-    plm.devices.add_device_callback(async_plm_new_device)
+    insteon_modem.devices.add_device_callback(async_new_insteon_device)
 
     if x10_all_units_off_housecode:
-        device = plm.add_x10_device(x10_all_units_off_housecode,
-                                    20,
-                                    'allunitsoff')
+        device = insteon_modem.add_x10_device(x10_all_units_off_housecode,
+                                              20,
+                                              'allunitsoff')
     if x10_all_lights_on_housecode:
-        device = plm.add_x10_device(x10_all_lights_on_housecode,
-                                    21,
-                                    'alllightson')
+        device = insteon_modem.add_x10_device(x10_all_lights_on_housecode,
+                                              21,
+                                              'alllightson')
     if x10_all_lights_off_housecode:
-        device = plm.add_x10_device(x10_all_lights_off_housecode,
-                                    22,
-                                    'alllightsoff')
+        device = insteon_modem.add_x10_device(x10_all_lights_off_housecode,
+                                              22,
+                                              'alllightsoff')
     for device in x10_devices:
         housecode = device.get(CONF_HOUSECODE)
         unitcode = device.get(CONF_UNITCODE)
@@ -300,11 +337,11 @@ def async_setup(hass, config):
             x10_type = 'dimmable'
         elif device.get(CONF_PLATFORM) == 'binary_sensor':
             x10_type = 'sensor'
-        _LOGGER.debug("Adding X10 device to insteonplm: %s %d %s",
+        _LOGGER.debug("Adding X10 device to Insteon: %s %d %s",
                       housecode, unitcode, x10_type)
-        device = plm.add_x10_device(housecode,
-                                    unitcode,
-                                    x10_type)
+        device = insteon_modem.add_x10_device(housecode,
+                                              unitcode,
+                                              x10_type)
         if device and hasattr(device.states[0x01], 'steps'):
             device.states[0x01].steps = steps
 
@@ -324,11 +361,14 @@ class IPDB:
         from insteonplm.states.onOff import (OnOffSwitch,
                                              OnOffSwitch_OutletTop,
                                              OnOffSwitch_OutletBottom,
-                                             OpenClosedRelay)
+                                             OpenClosedRelay,
+                                             OnOffKeypadA,
+                                             OnOffKeypad)
 
         from insteonplm.states.dimmable import (DimmableSwitch,
                                                 DimmableSwitch_Fan,
-                                                DimmableRemote)
+                                                DimmableRemote,
+                                                DimmableKeypadA)
 
         from insteonplm.states.sensor import (VariableSensor,
                                               OnOffSensor,
@@ -347,6 +387,8 @@ class IPDB:
                        State(OnOffSwitch_OutletBottom, 'switch'),
                        State(OpenClosedRelay, 'switch'),
                        State(OnOffSwitch, 'switch'),
+                       State(OnOffKeypadA, 'switch'),
+                       State(OnOffKeypad, 'switch'),
 
                        State(LeakSensorDryWet, 'binary_sensor'),
                        State(IoLincSensor, 'binary_sensor'),
@@ -357,6 +399,7 @@ class IPDB:
                        State(DimmableSwitch_Fan, 'fan'),
                        State(DimmableSwitch, 'light'),
                        State(DimmableRemote, 'on_off_events'),
+                       State(DimmableKeypadA, 'light'),
 
                        State(X10DimmableSwitch, 'light'),
                        State(X10OnOffSwitch, 'switch'),
@@ -382,11 +425,11 @@ class IPDB:
         return None
 
 
-class InsteonPLMEntity(Entity):
+class InsteonEntity(Entity):
     """INSTEON abstract base entity."""
 
     def __init__(self, device, state_key):
-        """Initialize the INSTEON PLM binary sensor."""
+        """Initialize the INSTEON binary sensor."""
         self._insteon_device_state = device.states[state_key]
         self._insteon_device = device
         self._insteon_device.aldb.add_loaded_callback(self._aldb_loaded)
@@ -429,11 +472,17 @@ class InsteonPLMEntity(Entity):
     @callback
     def async_entity_update(self, deviceid, statename, val):
         """Receive notification from transport that new data exists."""
+        _LOGGER.debug('Received update for device %s group %d statename %s',
+                      self.address, self.group,
+                      self._insteon_device_state.name)
         self.async_schedule_update_ha_state()
 
     @asyncio.coroutine
     def async_added_to_hass(self):
         """Register INSTEON update events."""
+        _LOGGER.debug('Tracking updates for device %s group %d statename %s',
+                      self.address, self.group,
+                      self._insteon_device_state.name)
         self._insteon_device_state.register_updates(
             self.async_entity_update)
         self.hass.data[DOMAIN]['entities'][self.entity_id] = self
@@ -460,7 +509,7 @@ def print_aldb_to_log(aldb):
     _LOGGER.info('ALDB load status is %s', aldb.status.name)
     if aldb.status not in [ALDBStatus.LOADED, ALDBStatus.PARTIAL]:
         _LOGGER.warning('Device All-Link database not loaded')
-        _LOGGER.warning('Use service insteon_plm.load_aldb first')
+        _LOGGER.warning('Use service insteon.load_aldb first')
         return
 
     _LOGGER.info('RecID In Use Mode HWM Group Address  Data 1 Data 2 Data 3')
diff --git a/homeassistant/components/insteon_plm/services.yaml b/homeassistant/components/insteon/services.yaml
similarity index 100%
rename from homeassistant/components/insteon_plm/services.yaml
rename to homeassistant/components/insteon/services.yaml
diff --git a/homeassistant/components/insteon_local.py b/homeassistant/components/insteon_local.py
index a18d4e0aa14..1dfb0c6e4cb 100644
--- a/homeassistant/components/insteon_local.py
+++ b/homeassistant/components/insteon_local.py
@@ -5,82 +5,24 @@ For more details about this component, please refer to the documentation at
 https://home-assistant.io/components/insteon_local/
 """
 import logging
-import os
-
-import requests
-import voluptuous as vol
-
-from homeassistant.const import (
-    CONF_HOST, CONF_PASSWORD, CONF_PORT, CONF_TIMEOUT, CONF_USERNAME)
-import homeassistant.helpers.config_validation as cv
-from homeassistant.helpers.discovery import load_platform
-
-REQUIREMENTS = ['insteonlocal==0.53']
 
 _LOGGER = logging.getLogger(__name__)
 
-DEFAULT_PORT = 25105
-DEFAULT_TIMEOUT = 10
-DOMAIN = 'insteon_local'
-
-INSTEON_CACHE = '.insteon_local_cache'
-
-INSTEON_PLATFORMS = [
-    'light',
-    'switch',
-    'fan',
-]
-
-CONFIG_SCHEMA = vol.Schema({
-    DOMAIN: vol.Schema({
-        vol.Required(CONF_HOST): cv.string,
-        vol.Required(CONF_PASSWORD): cv.string,
-        vol.Required(CONF_USERNAME): cv.string,
-        vol.Optional(CONF_PORT, default=DEFAULT_PORT): cv.port,
-        vol.Optional(CONF_TIMEOUT, default=DEFAULT_TIMEOUT): cv.positive_int,
-    })
-}, extra=vol.ALLOW_EXTRA)
-
 
 def setup(hass, config):
-    """Set up the local Insteon hub."""
-    from insteonlocal.Hub import Hub
+    """Setup the insteon_local component.
 
-    conf = config[DOMAIN]
-    username = conf.get(CONF_USERNAME)
-    password = conf.get(CONF_PASSWORD)
-    host = conf.get(CONF_HOST)
-    port = conf.get(CONF_PORT)
-    timeout = conf.get(CONF_TIMEOUT)
+    This component is depreciated as of release 0.77 and should be removed in
+    release 0.90.
+    """
+    _LOGGER.warning('The insteon_local comonent has been replaced by '
+                    'the insteon component')
+    _LOGGER.warning('Please see https://home-assistant.io/components/insteon')
 
-    try:
-        if not os.path.exists(hass.config.path(INSTEON_CACHE)):
-            os.makedirs(hass.config.path(INSTEON_CACHE))
+    hass.components.persistent_notification.create(
+        'insteon_local has been replaced by the insteon component.<br />'
+        'Please see https://home-assistant.io/components/insteon',
+        title='insteon_local Component Deactivated',
+        notification_id='insteon_local')
 
-        insteonhub = Hub(host, username, password, port, timeout, _LOGGER,
-                         hass.config.path(INSTEON_CACHE))
-
-        # Check for successful connection
-        insteonhub.get_buffer_status()
-    except requests.exceptions.ConnectTimeout:
-        _LOGGER.error("Could not connect", exc_info=True)
-        return False
-    except requests.exceptions.ConnectionError:
-        _LOGGER.error("Could not connect", exc_info=True)
-        return False
-    except requests.exceptions.RequestException:
-        if insteonhub.http_code == 401:
-            _LOGGER.error("Bad username or password for Insteon_local hub")
-        else:
-            _LOGGER.error("Error on Insteon_local hub check", exc_info=True)
-        return False
-
-    linked = insteonhub.get_linked()
-
-    hass.data['insteon_local'] = insteonhub
-
-    for insteon_platform in INSTEON_PLATFORMS:
-        load_platform(hass, insteon_platform, DOMAIN, {'linked': linked},
-                      config)
-
-    return True
+    return False
diff --git a/homeassistant/components/insteon_plm.py b/homeassistant/components/insteon_plm.py
new file mode 100644
index 00000000000..bd41819a0fa
--- /dev/null
+++ b/homeassistant/components/insteon_plm.py
@@ -0,0 +1,30 @@
+"""
+Support for INSTEON PowerLinc Modem.
+
+For more details about this component, please refer to the documentation at
+https://home-assistant.io/components/insteon_plm/
+"""
+import asyncio
+import logging
+
+_LOGGER = logging.getLogger(__name__)
+
+
+@asyncio.coroutine
+def async_setup(hass, config):
+    """Setup the insteon_plm component.
+
+    This component is depreciated as of release 0.77 and should be removed in
+    release 0.90.
+    """
+    _LOGGER.warning('The insteon_plm comonent has been replaced by '
+                    'the insteon component')
+    _LOGGER.warning('Please see https://home-assistant.io/components/insteon')
+
+    hass.components.persistent_notification.create(
+        'insteon_plm has been replaced by the insteon component.<br />'
+        'Please see https://home-assistant.io/components/insteon',
+        title='insteon_plm Component Deactivated',
+        notification_id='insteon_plm')
+
+    return False
diff --git a/homeassistant/components/light/insteon_plm.py b/homeassistant/components/light/insteon.py
similarity index 80%
rename from homeassistant/components/light/insteon_plm.py
rename to homeassistant/components/light/insteon.py
index 8a3b463c2bd..88a9ab01de5 100644
--- a/homeassistant/components/light/insteon_plm.py
+++ b/homeassistant/components/light/insteon.py
@@ -2,40 +2,40 @@
 Support for Insteon lights via PowerLinc Modem.
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/light.insteon_plm/
+https://home-assistant.io/components/light.insteon/
 """
 import asyncio
 import logging
 
-from homeassistant.components.insteon_plm import InsteonPLMEntity
+from homeassistant.components.insteon import InsteonEntity
 from homeassistant.components.light import (
     ATTR_BRIGHTNESS, SUPPORT_BRIGHTNESS, Light)
 
 _LOGGER = logging.getLogger(__name__)
 
-DEPENDENCIES = ['insteon_plm']
+DEPENDENCIES = ['insteon']
 
 MAX_BRIGHTNESS = 255
 
 
 @asyncio.coroutine
 def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
-    """Set up the Insteon PLM device."""
-    plm = hass.data['insteon_plm'].get('plm')
+    """Set up the Insteon component."""
+    insteon_modem = hass.data['insteon'].get('modem')
 
     address = discovery_info['address']
-    device = plm.devices[address]
+    device = insteon_modem.devices[address]
     state_key = discovery_info['state_key']
 
     _LOGGER.debug('Adding device %s entity %s to Light platform',
                   device.address.hex, device.states[state_key].name)
 
-    new_entity = InsteonPLMDimmerDevice(device, state_key)
+    new_entity = InsteonDimmerDevice(device, state_key)
 
     async_add_devices([new_entity])
 
 
-class InsteonPLMDimmerDevice(InsteonPLMEntity, Light):
+class InsteonDimmerDevice(InsteonEntity, Light):
     """A Class for an Insteon device."""
 
     @property
diff --git a/homeassistant/components/light/insteon_local.py b/homeassistant/components/light/insteon_local.py
deleted file mode 100644
index e2bc54de517..00000000000
--- a/homeassistant/components/light/insteon_local.py
+++ /dev/null
@@ -1,98 +0,0 @@
-"""
-Support for Insteon dimmers via local hub control.
-
-For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/light.insteon_local/
-"""
-import logging
-from datetime import timedelta
-
-from homeassistant.components.light import (
-    ATTR_BRIGHTNESS, SUPPORT_BRIGHTNESS, Light)
-from homeassistant import util
-
-_CONFIGURING = {}
-_LOGGER = logging.getLogger(__name__)
-
-DEPENDENCIES = ['insteon_local']
-DOMAIN = 'light'
-
-MIN_TIME_BETWEEN_FORCED_SCANS = timedelta(milliseconds=100)
-MIN_TIME_BETWEEN_SCANS = timedelta(seconds=5)
-
-SUPPORT_INSTEON_LOCAL = SUPPORT_BRIGHTNESS
-
-
-def setup_platform(hass, config, add_devices, discovery_info=None):
-    """Set up the Insteon local light platform."""
-    insteonhub = hass.data['insteon_local']
-    if discovery_info is None:
-        return
-
-    linked = discovery_info['linked']
-    device_list = []
-    for device_id in linked:
-        if linked[device_id]['cat_type'] == 'dimmer':
-            device = insteonhub.dimmer(device_id)
-            device_list.append(
-                InsteonLocalDimmerDevice(device)
-            )
-
-    add_devices(device_list)
-
-
-class InsteonLocalDimmerDevice(Light):
-    """An abstract Class for an Insteon node."""
-
-    def __init__(self, node):
-        """Initialize the device."""
-        self.node = node
-        self._value = 0
-
-    @property
-    def name(self):
-        """Return the name of the node."""
-        return self.node.device_id
-
-    @property
-    def unique_id(self):
-        """Return the ID of this Insteon node."""
-        return self.node.device_id
-
-    @property
-    def brightness(self):
-        """Return the brightness of this light between 0..255."""
-        return self._value
-
-    @util.Throttle(MIN_TIME_BETWEEN_SCANS, MIN_TIME_BETWEEN_FORCED_SCANS)
-    def update(self):
-        """Update state of the light."""
-        resp = self.node.status(0)
-
-        while 'error' in resp and resp['error'] is True:
-            resp = self.node.status(0)
-
-        if 'cmd2' in resp:
-            self._value = int(resp['cmd2'], 16)
-
-    @property
-    def is_on(self):
-        """Return the boolean response if the node is on."""
-        return self._value != 0
-
-    @property
-    def supported_features(self):
-        """Flag supported features."""
-        return SUPPORT_INSTEON_LOCAL
-
-    def turn_on(self, **kwargs):
-        """Turn device on."""
-        brightness = 100
-        if ATTR_BRIGHTNESS in kwargs:
-            brightness = int(kwargs[ATTR_BRIGHTNESS]) / 255 * 100
-
-        self.node.change_level(brightness)
-
-    def turn_off(self, **kwargs):
-        """Turn device off."""
-        self.node.off()
diff --git a/homeassistant/components/sensor/insteon_plm.py b/homeassistant/components/sensor/insteon.py
similarity index 61%
rename from homeassistant/components/sensor/insteon_plm.py
rename to homeassistant/components/sensor/insteon.py
index 61f5877ed78..59c0fee7617 100644
--- a/homeassistant/components/sensor/insteon_plm.py
+++ b/homeassistant/components/sensor/insteon.py
@@ -2,35 +2,35 @@
 Support for INSTEON dimmers via PowerLinc Modem.
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/sensor.insteon_plm/
+https://home-assistant.io/components/sensor.insteon/
 """
 import asyncio
 import logging
 
-from homeassistant.components.insteon_plm import InsteonPLMEntity
+from homeassistant.components.insteon import InsteonEntity
 from homeassistant.helpers.entity import Entity
 
-DEPENDENCIES = ['insteon_plm']
+DEPENDENCIES = ['insteon']
 
 _LOGGER = logging.getLogger(__name__)
 
 
 @asyncio.coroutine
 def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
-    """Set up the INSTEON PLM device class for the hass platform."""
-    plm = hass.data['insteon_plm'].get('plm')
+    """Set up the INSTEON device class for the hass platform."""
+    insteon_modem = hass.data['insteon'].get('modem')
 
     address = discovery_info['address']
-    device = plm.devices[address]
+    device = insteon_modem.devices[address]
     state_key = discovery_info['state_key']
 
     _LOGGER.debug('Adding device %s entity %s to Sensor platform',
                   device.address.hex, device.states[state_key].name)
 
-    new_entity = InsteonPLMSensorDevice(device, state_key)
+    new_entity = InsteonSensorDevice(device, state_key)
 
     async_add_devices([new_entity])
 
 
-class InsteonPLMSensorDevice(InsteonPLMEntity, Entity):
+class InsteonSensorDevice(InsteonEntity, Entity):
     """A Class for an Insteon device."""
diff --git a/homeassistant/components/switch/insteon_plm.py b/homeassistant/components/switch/insteon.py
similarity index 69%
rename from homeassistant/components/switch/insteon_plm.py
rename to homeassistant/components/switch/insteon.py
index c357d1ccc04..8575b16c69b 100644
--- a/homeassistant/components/switch/insteon_plm.py
+++ b/homeassistant/components/switch/insteon.py
@@ -2,26 +2,26 @@
 Support for INSTEON dimmers via PowerLinc Modem.
 
 For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/switch.insteon_plm/
+https://home-assistant.io/components/switch.insteon/
 """
 import asyncio
 import logging
 
-from homeassistant.components.insteon_plm import InsteonPLMEntity
+from homeassistant.components.insteon import InsteonEntity
 from homeassistant.components.switch import SwitchDevice
 
-DEPENDENCIES = ['insteon_plm']
+DEPENDENCIES = ['insteon']
 
 _LOGGER = logging.getLogger(__name__)
 
 
 @asyncio.coroutine
 def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
-    """Set up the INSTEON PLM device class for the hass platform."""
-    plm = hass.data['insteon_plm'].get('plm')
+    """Set up the INSTEON device class for the hass platform."""
+    insteon_modem = hass.data['insteon'].get('modem')
 
     address = discovery_info['address']
-    device = plm.devices[address]
+    device = insteon_modem.devices[address]
     state_key = discovery_info['state_key']
 
     state_name = device.states[state_key].name
@@ -30,17 +30,16 @@ def async_setup_platform(hass, config, async_add_devices, discovery_info=None):
                   device.address.hex, device.states[state_key].name)
 
     new_entity = None
-    if state_name in ['lightOnOff', 'outletTopOnOff', 'outletBottomOnOff',
-                      'x10OnOffSwitch']:
-        new_entity = InsteonPLMSwitchDevice(device, state_key)
-    elif state_name == 'openClosedRelay':
-        new_entity = InsteonPLMOpenClosedDevice(device, state_key)
+    if state_name == 'openClosedRelay':
+        new_entity = InsteonOpenClosedDevice(device, state_key)
+    else:
+        new_entity = InsteonSwitchDevice(device, state_key)
 
     if new_entity is not None:
         async_add_devices([new_entity])
 
 
-class InsteonPLMSwitchDevice(InsteonPLMEntity, SwitchDevice):
+class InsteonSwitchDevice(InsteonEntity, SwitchDevice):
     """A Class for an Insteon device."""
 
     @property
@@ -59,7 +58,7 @@ class InsteonPLMSwitchDevice(InsteonPLMEntity, SwitchDevice):
         self._insteon_device_state.off()
 
 
-class InsteonPLMOpenClosedDevice(InsteonPLMEntity, SwitchDevice):
+class InsteonOpenClosedDevice(InsteonEntity, SwitchDevice):
     """A Class for an Insteon device."""
 
     @property
diff --git a/homeassistant/components/switch/insteon_local.py b/homeassistant/components/switch/insteon_local.py
deleted file mode 100644
index c4c8a854670..00000000000
--- a/homeassistant/components/switch/insteon_local.py
+++ /dev/null
@@ -1,83 +0,0 @@
-"""
-Support for Insteon switch devices via local hub support.
-
-For more details about this component, please refer to the documentation at
-https://home-assistant.io/components/switch.insteon_local/
-"""
-import logging
-from datetime import timedelta
-
-from homeassistant.components.switch import SwitchDevice
-from homeassistant import util
-
-_CONFIGURING = {}
-_LOGGER = logging.getLogger(__name__)
-
-DEPENDENCIES = ['insteon_local']
-DOMAIN = 'switch'
-
-MIN_TIME_BETWEEN_FORCED_SCANS = timedelta(milliseconds=100)
-MIN_TIME_BETWEEN_SCANS = timedelta(seconds=10)
-
-
-def setup_platform(hass, config, add_devices, discovery_info=None):
-    """Set up the Insteon local switch platform."""
-    insteonhub = hass.data['insteon_local']
-    if discovery_info is None:
-        return
-
-    linked = discovery_info['linked']
-    device_list = []
-    for device_id in linked:
-        if linked[device_id]['cat_type'] == 'switch':
-            device = insteonhub.switch(device_id)
-            device_list.append(
-                InsteonLocalSwitchDevice(device)
-            )
-
-    add_devices(device_list)
-
-
-class InsteonLocalSwitchDevice(SwitchDevice):
-    """An abstract Class for an Insteon node."""
-
-    def __init__(self, node):
-        """Initialize the device."""
-        self.node = node
-        self._state = False
-
-    @property
-    def name(self):
-        """Return the name of the node."""
-        return self.node.device_id
-
-    @property
-    def unique_id(self):
-        """Return the ID of this Insteon node."""
-        return self.node.device_id
-
-    @util.Throttle(MIN_TIME_BETWEEN_SCANS, MIN_TIME_BETWEEN_FORCED_SCANS)
-    def update(self):
-        """Get the updated status of the switch."""
-        resp = self.node.status(0)
-
-        while 'error' in resp and resp['error'] is True:
-            resp = self.node.status(0)
-
-        if 'cmd2' in resp:
-            self._state = int(resp['cmd2'], 16) > 0
-
-    @property
-    def is_on(self):
-        """Return the boolean response if the node is on."""
-        return self._state
-
-    def turn_on(self, **kwargs):
-        """Turn device on."""
-        self.node.on()
-        self._state = True
-
-    def turn_off(self, **kwargs):
-        """Turn device off."""
-        self.node.off()
-        self._state = False
diff --git a/requirements_all.txt b/requirements_all.txt
index ada216de5d8..8bd39162d98 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -468,11 +468,8 @@ ihcsdk==2.2.0
 # homeassistant.components.sensor.influxdb
 influxdb==5.0.0
 
-# homeassistant.components.insteon_local
-insteonlocal==0.53
-
-# homeassistant.components.insteon_plm
-insteonplm==0.11.7
+# homeassistant.components.insteon
+insteonplm==0.12.3
 
 # homeassistant.components.sensor.iperf3
 iperf3==0.1.10