From: Newbie- First Insteon Setup

BLH

Active Member
Are all three wires connected to the switch?
Is the original switch part of a three way setup?
That could indicate you don't have a Neutral in the switch box.

All Insteon devices need a Neutral power connection. There are no two wire Insteon Devices.
They do make a two wire conversion set. A SwitchLinc and an InlineLinc linked to each other. You rewire the original switch loop to provide power to the SwitchLinc and cap off its load connection. Then you add the InlineLnc inside the light fixture and it controls the lights.

It is recommended that you have at least one Dual Band device on each phase of the home to bridge the lines.
Access Points or any of the others Dual Band devices can be used.
 
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