Ball Thrown Out of Play, 2 Bases Awarded from Time of Pitch?

[Bulldog Blue]

NFHS Game
R1 on 1B. After a pitch is released R1 starts to run toward 2B.
BR hits very slow ground ball fair toward F5. By the time F5 fields the ball, R1 has already rounded 2B and is approaching 3B, behind F5.
F5's throw to F3 at 1B is errant and goes out of play.
FU calls dead ball, and awards R1 3B and BR 2B.
Offensive Coach calls time and asks FU why R1 is not awarded Home, since she was past 2B and almost at 3B when F5 threw the ball.
FU tells OC that on ball thrown out of play, that each runner is awarded 2 bases from the time of the pitch.

What say you?