Position Paper: Unofficial Chapter Houses
One of the more challenging exposures in insuring a women’s fraternity or sorority is keeping insurance and risk management recommendations contemporary with the changing dynamics of campus life. As chapter membership continues to grow, more members are seeking alternate housing arrangements where several sorority sisters live together.
On campuses where official sorority chapter houses are not as common—or where a specific sorority does not have a designated house—it has become increasingly typical for members to secure off-campus housing together.
Irrespective of the reason, the number of these “living arrangements” outside of traditional chapter housing is increasing. Unfortunately, many of these residences become known as the sorority’s house on campus and sorority-wide parties or events are held on the premises. We refer to these locations as “unofficial houses.”
Why Unofficial Houses Pose a Significant Concern
These unofficial houses present serious challenges to both the national organization and to the integrity of the insurance program. The most common issues include:
- Lack of Ownership and Oversight: Unofficial houses are not owned or managed by the sorority or its housing corporation, which often means they do not meet the same safety and maintenance standards as official facilities.
- Misunderstanding of Affiliation: While residents may view the arrangement as a private lease among friends, the broader campus community often perceives the property as connected to the sorority. This perception can create a direct association with the organization if and when an incident occurs.
- Public Perception and Liability Exposure: When a majority of residents are members of the same sorority, it is easy for others to assume the residence is a sanctioned chapter house. Should a serious incident—especially one involving alcohol or guests—occur, both the residents and the organization could be named in a lawsuit, regardless of who holds the lease or owns the property.
- Significant claims activity: We have seen a notable increase in claims arising from these unofficial residences rather than official chapter houses.
- Higher claim severity: In addition to increased frequency, we have also seen a substantial increase in the ultimate cost of claims stemming from unofficial houses. This is often due to the combination of (1) no ownership or oversight by the organization, (2) safety and behavior standards that fall short of what is expected in an official chapter house, and (3) the ease with which plaintiffs can argue affiliation when the house is known locally as the sorority’s residence.
Risk Management Expectations
If such living arrangements exist, they should be handled with a similar level of awareness and caution as an official chapter facility—even though they are privately rented and not subject to sorority policies.
To reduce risk and confusion, we strongly recommend the following:
- No exterior identification of the residence as affiliated with the sorority—this includes letters, symbols, banners, or signage of any kind.
- Avoid hosting gatherings that could be even remotely interpreted as sorority events, such as recruitment functions, celebrations, or social events organized primarily for members or guests of the sorority. Do not announce functions hosted at the unofficial house at chapter meetings or on chapter group chats.
- Be mindful of alcohol use and party activity. Even if residents are of legal drinking age, incidents involving alcohol can quickly lead to liability if the house is viewed by others as “the [sorority name] house.”
- Communicate early with chapter advisors or housing volunteers if this type of housing arrangement exists, so leadership is aware of any potential reputational or liability risks.
- Promptly notify national leadership if concerns arise or if the property has become informally recognized on campus as the organization’s house. We at MJ Sorority can assist in reviewing and advising on the situation.
Next Steps
We have identified this issue to your national leadership, as it represents a growing exposure within the women’s fraternity/sorority community. As a local volunteer or advisor, you may be more aware of these housing situations than headquarters.
If you become aware of an unofficial house affiliated with your chapter, please bring it to the attention of your leadership team. Upon review, they may engage MJ Sorority to assist in evaluating and addressing the specific risks associated with that housing arrangement.
Our goal is to ensure that members understand the potential consequences of allowing a privately rented property to become publicly known as a chapter house. Even without formal affiliation, the perception of connection can create legal and financial exposure for both the residents and the organization.