I also have this problem with a rescue dog (siberian husky). She went absolutely MENTAL if I left the house. She did the same thing your dog did--tore up a large steel kennel and the couch after she escaped. She was also self destructive, and once swallowed a WHOLE tshirt (yep, she needed surgery).

Two things helped my dog, besides behavior training (check out the great little book by Patricia McConnell): A smaller crate, and yes, DRUGS. I got a PetPorter size "large" that "fit" my dog. Too much room, and the dog starts to panic. Too much room, and you give your dog the space to get some good momentum going in tearing up the kennel! The plastic kennels also have more of a "den" feel then the large steel crates. I also put my dog on the anxiety drug Clomicalm, after my vet recommended it. This drug is available in the much cheaper generic Clomipramine. All together--the smaller, darker kennel, the drugs and the methodical behavior modification (I consulted a behavorist)--the results have been LIVABLE. It's a constant battle, though. She still cannot be outside her crate when I'm gone...but no longer freaks out INSIDE her kennel. In fact, I often come home, and she's snoozing away. Incidently, the BIGGEST difference in her behavior was after she started the DRUG. Yes, exercise is GREAT to tire out the dog, but it will not alone solve your separation anxiety problem. You'll need to do more than that.

Please don't say "I don't believe in drugs" for your dog. I said the same thing for 5 months when I got my dog, and for 5 months my dog was absolutely MISERABLE. My vet finally convinced me. This may be your best bet for help. All the drugs do is balance chemicals in the dog's brain. Just like a person suffering from depression or anxiety, a dog can get great benefits out of these medicines. The drugs don't change the dog's personality or make the dog "high". If the drug can help your dog, then try the drug!

Talk to your vet about it. That's always the best place to start.

--vicki