well, if Kryptonite's insurance is anything like OnGuards, good luck with that:

http://consumerist.com/5310313/free-...ects-all-bikes

Specifically:

7. This coverage is not free, you must pay for it
8. The coverage is void if "Torches, battery operated tools or power tools were used to open the lock."

Here's a thread on the kryptonite insurance plan:

http://www.bikeforums.net/showthread.php?t=63130

Don't you have home or renter's insurance? I would think it would be covered under that.