AVS system works by number and zipcode true so it should work. I have no real comment on this since I don't like using addresses I don't have access to in general but for verification, should really be no issue.
I, however, would not report of my personal CC's to be "stolen". I would just call up the company, explain that my card is mangled due to XYZ reasons, figure a good time to get new account and have new card issued.
The REASON for this is that any issues of "stolen" or "lost" card are ALWAYS logged by the company. So, in the future, if it ever REALLY does happen - company will see past history of this and may take further action (i.e: Sir you are liability - we do not want your business) - unlikely but potentially.
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