diff --git a/homeassistant/components/insteon/__init__.py b/homeassistant/components/insteon/__init__.py
index 5b3e5edc310..de0177a4f97 100644
--- a/homeassistant/components/insteon/__init__.py
+++ b/homeassistant/components/insteon/__init__.py
@@ -1,5 +1,4 @@
 """Support for INSTEON Modems (PLM and Hub)."""
-# pylint: disable=hass-use-runtime-data  # Uses legacy hass.data[DOMAIN] pattern
 
 from contextlib import suppress
 import logging
@@ -7,7 +6,7 @@ import logging
 from pyinsteon import async_close, async_connect, devices
 from pyinsteon.constants import ReadWriteMode
 
-from homeassistant.config_entries import SOURCE_IMPORT, ConfigEntry
+from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_PLATFORM, EVENT_HOMEASSISTANT_STOP
 from homeassistant.core import HomeAssistant
 from homeassistant.exceptions import ConfigEntryNotReady
@@ -34,7 +33,6 @@ from .utils import (
 )
 
 _LOGGER = logging.getLogger(__name__)
-OPTIONS = "options"
 
 
 async def async_get_device_config(hass, config_entry):
@@ -78,12 +76,10 @@ async def close_insteon_connection(*args):
 async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
     """Set up an Insteon entry."""
 
-    if dev_path := entry.options.get(CONF_DEV_PATH):
-        hass.data[DOMAIN] = {}
-        hass.data[DOMAIN][CONF_DEV_PATH] = dev_path
-
     api.async_load_api(hass)
-    await api.async_register_insteon_frontend(hass)
+    await api.async_register_insteon_frontend(
+        hass, entry.options.get(CONF_DEV_PATH) or None
+    )
 
     if not devices.modem:
         try:
@@ -100,19 +96,6 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
         workdir=hass.config.config_dir, id_devices=0, load_modem_aldb=0
     )
 
-    # If options existed in YAML and have not already been saved to the config entry
-    # add them now
-    if (
-        not entry.options
-        and entry.source == SOURCE_IMPORT
-        and hass.data.get(DOMAIN)
-        and hass.data[DOMAIN].get(OPTIONS)
-    ):
-        hass.config_entries.async_update_entry(
-            entry=entry,
-            options=hass.data[DOMAIN][OPTIONS],
-        )
-
     for device_override in entry.options.get(CONF_OVERRIDE, []):
         # Override the device default capabilities for a specific address
         address = device_override.get("address")
diff --git a/homeassistant/components/insteon/api/__init__.py b/homeassistant/components/insteon/api/__init__.py
index f56c5ff1380..aabeb2a3d5f 100644
--- a/homeassistant/components/insteon/api/__init__.py
+++ b/homeassistant/components/insteon/api/__init__.py
@@ -7,7 +7,7 @@ from homeassistant.components.frontend import async_panel_exists
 from homeassistant.components.http import StaticPathConfig
 from homeassistant.core import HomeAssistant, callback
 
-from ..const import CONF_DEV_PATH, DOMAIN
+from ..const import DOMAIN
 from .aldb import (
     websocket_add_default_links,
     websocket_change_aldb_record,
@@ -91,11 +91,12 @@ def async_load_api(hass):
     websocket_api.async_register_command(hass, websocket_get_unknown_devices)
 
 
-async def async_register_insteon_frontend(hass: HomeAssistant):
+async def async_register_insteon_frontend(
+    hass: HomeAssistant, dev_path: str | None = None
+) -> None:
     """Register the Insteon frontend configuration panel."""
     # Add to sidepanel if needed
     if not async_panel_exists(hass, DOMAIN):
-        dev_path = hass.data.get(DOMAIN, {}).get(CONF_DEV_PATH)
         is_dev = dev_path is not None
         path = dev_path or locate_dir()
         build_id = get_build_id(is_dev)
diff --git a/tests/components/insteon/test_init.py b/tests/components/insteon/test_init.py
index c5524ff1919..c17ce26228f 100644
--- a/tests/components/insteon/test_init.py
+++ b/tests/components/insteon/test_init.py
@@ -1,6 +1,6 @@
 """Test the init file for the Insteon component."""
 
-from unittest.mock import patch
+from unittest.mock import AsyncMock, patch
 
 import pytest
 
@@ -78,6 +78,9 @@ async def test_import_frontend_dev_url(hass: HomeAssistant) -> None:
         patch.object(insteon, "async_connect", new=mock_successful_connection),
         patch.object(insteon, "async_close") as mock_close,
         patch.object(insteon, "devices", new=MockDevices()),
+        patch.object(
+            insteon.api, "async_register_insteon_frontend", new=AsyncMock()
+        ) as mock_register_frontend,
     ):
         assert await async_setup_component(
             hass,
@@ -85,7 +88,7 @@ async def test_import_frontend_dev_url(hass: HomeAssistant) -> None:
             {},
         )
         await hass.async_block_till_done()
-        assert hass.data[DOMAIN][CONF_DEV_PATH] == "/some/path"
+        mock_register_frontend.assert_awaited_once_with(hass, "/some/path")
         hass.bus.async_fire(EVENT_HOMEASSISTANT_STOP)
         await hass.async_block_till_done()
         assert insteon.devices.async_save.call_count == 1