Abstract
Abstract Currently, flood risk can be considered as the most serious threat, mainly in areas and countries where hardly any other natural risks occur. In relation to the field of valuation and insurance, flood risk represents a significant factor entering the new valuation procedures as well as binding regulations for real property valuation. The main objective of the research was to determine whether flood risk could be considered as a price-setting factor in market price of a real estate. If so, then it would be possible to start considering it in real estate valuation methods. Statistical methods of multiple linear regression model and statistical hypothesis testing, particularly statistical signification of regression parameter representing flood risk were employed in the research. The research was performed on the housing segment of the Czech real estate market. The paper presents an estimated model with a modified set of parameters that can be used to determine the market price of a house and also determine the degree of influence factor the flood risk may have on the final market price.
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