The plan is only for if it breaks or parts go bad or anything occurs do to normal wear and tear. I'm going to call State Farm today, but I'm 95% sure that if it's stolen or I lose it I can get it replaced through my regular insurance, minus the deducatble. The irony of course is that if I drop it and break it, State Farm won't replace it - but if I drop it off the side of a mountain and can't find it at the bottom, they'll replace it as lost.
As for being in another country and crime - it's always possible, but New Zealand isn't the den of crime that some of the bigger cities that I've been through in Europe are. I'm pretty good about keeping my bag wrapped around an arm or a leg at all times and such. In the end, I'm a pretty experienecd traveller and always do my best to not look like a tourist... I'm 10 times more worried that I'll drop it than I am about theft.