This is a quick study I did using the Apex Destruction plugin by Epic.
This mesh was downloaded from megascans library.
I have generated chunks using Houdini FX. But this can be achieved with inbuilt fracture mesh tool.
Blueprint setup is quite simple
I am doing a linetrace here to check if we have hit any actor and then I am saving the actor info in the apply point damage function. Its WIP unfortunately, I am planning to replace the linetrace and add some muzzle flashes on the gun.
This applies base damage to the hit location (35 in this case) which is greater than the debris threshold value which then causes the mesh to break at the given point.
On the hitpoint I am spawning the niagara Particle effect of dust n debris and trigger the actual debris as the damage value is higher than the defined damage threshold value.
Niagara setup :
Fairly simple setup with a couple of mesh debris (with collision) and a smoke emitter to give it more volume and feel of destruction.