There was a nice tutorial about creating a Cloth Tearing effect.
What could be the best object to test this was a Sackboy model
I had modeled just on my spare time at work and had it waiting
for a right occasion. Now this might be a bad day for Sackboy but
the effect might work quite well in a game animation as a character
You can also download free Sackboy character that has all geometry
modeled with separate parts. Simulation needed the head to be
converted into very small polygons for it to look good
but you can use less subdivision if you want less detail.
Update: Texture was not include. I found even better fabric pattern here.