I agree with stillwater, the issue may be a broken relay. That ApplianceLinc and many Insteon relay products used model #TRV-24VDC-SC-AL from a company called Tai-Shing Electronics or TTI. That part has been replaced with TRVF-24VDC-SD-AL. The spec are 22.3 x 16.3 x 11mm, 24VDC @8.3mA coil and contacts rated for 250VAC, 16A, TV-5. A drop in replacement is Massuse ME-23-24P. There are many relays that match those specifications on DigiKey, Mouser, and others.
Another possibility is the capacitors across the high-voltage switched contacts have shorted. Caps sometimes break down when attached to some loads, which produce a high voltage reverse EMF upon relay opening. This can be tested with an ohm meter or continuity tester placed across those capacitors near the relay.
Good luck,
-Pinch