The construction of tunnels in densely populated urban areas poses a significant challenge in terms of anticipating the settlement that may result from tunnel excavation. This paper presents a new and more realistic modeling method for tunnel excavation using a Tunnel Boring Machine (TBM). This method is compared with other reference modeling methods using a validated model of a subsurface tunnel excavated by a TBM with a slurry shield. A parametric study is conducted to investigate the impact of key parameters, including structure width, foundation depth, eccentricity, load on the structure, overburden depth, and tunnel diameter, on tunnel–soil–structure interaction and the resulting structure settlements. The results reveal that the tunnel diameter, eccentricity, and overburden depth have a significant impact on structure settlements, with values of 22.5%, 17%, and 7.1%, respectively. Finally, the paper proposes an equation for predicting the maximum settlement of a structure, considering the critical parameters. The validity of the equation is evaluated by comparing its results with the outputs from various case studies, including a newly validated model, two real-life case studies, and centrifuge tests. The results indicate a high level of consistency between the calculated and measured settlements.