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When you go to a trader you can increase your luck under upgrades. This is what the description for that upgrade is:

Increases the chance of good things happening when you need them most.

What exactly does luck upgrade affects? Does it increases the chance of finding better weapons when searching houses? Does it increase the amount of items found in houses?

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up vote 3 down vote accepted

(edited) Alright, I went and played a game and max-leveled my luck to confirm this.

Upgrading luck means you'll receive far more frequent critical hits whenever you're in a tight spot, which is either when a) there's one of the spontaneous waves coming at you, or b) when you're in the "heartbeat zone," or extremely low on health. That's all it does, nothing more. The full-level luck does boost crits quite a bit though.

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Edit your answer once you're sure about it and I'll mark it as answered. – ChrisHateZ Jan 23 '13 at 8:23

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