House Insurance for Bodily Injury?

I filed a claim with my insurance company under my Home Insurance to defend me in a slander lawsuit, The plaintiff is claiming "emotional distress". I was igned an attorney and they have been defending my case.....now, a couple of months later I received a Summons "Complaint" from my insurance company stating I am not covered as "emotional distress" is an exclusion. I am befuddled. Do I now have to hire an attorney to answer the complaint or should I just accept their determination and not answer. If I don't answer the "Complaint", I am automatically defaulted. Any recommendations as money is a huge issue for me...as in I don't have any. Thank you for any insight you may be able to provide.