On one of the forums, there was a question about exploding rockets and radial damage. I'm not sure if I answered the person's question, but I did create some example code on how I approach this. It is available on github....
Brief break down:
MyPawn: inherits from APawn (not ACharacter) and uses UFloatingPawnMovement (for no particular reason). The Mesh was modified to include a socket for spawning the rocket.
MyRocketActor: uses UProjectileMovementComponent which makes things easy. It has it's lifetime set to 0.5 seconds. Either it hits something or explodes after 0.5 seconds. Overrides NotifyHit to detect hit and calls UGameplayStatics::ApplyRadialDamage to cause damage.
MyTargetActor: an actor that takes damage from the rocket overriding TakeDamage
MyExplosionActor: just a "pretty" explosion.