The development and wider adoption of smart home technology also created an increased requirement for safe and secure smart home environments with guaranteed privacy constraints. In this paper, a short survey of privacy and security in the more broad smart-world context is first presented. The main contribution is then to analyze and rank attack vectors or entry points into a smart home system and propose solutions to remedy or diminish the risk of compromised security or privacy. Further, the usability impacts resulting from the proposed solutions are evaluated. The smart home system used for the analysis in this paper is a digitalSTROM installation, a home-automation solution that is quickly gaining popularity in central Europe, the findings, however, aim to be as solution independent as possible.