It means he poor
Depending on the policy one's home owners insurance could pay out a defamation claim if you have that coverage. So even if the person is "judgment proof" (not enough assets to be worth going after) the insurance companies have deep pockets and so might still be worth it or get some settlement.
This should not be considered legal advice and I'm not commenting on any particular situation. Especially since it has gotten so complicated and bizarre I'm not sure what is happening, who is who, etc. I'm only playing a lawyer on Ellgab.