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This letter generalizes a multibaseline interferometric synthetic aperture radar (InSAR) signal model to the polarimetric scenario. Based on this formulation, two high-performance spectral analysis techniques are adapted to process multibaseline Pol-InSAR observations. These new methods enhance the height estimation of scatterers by calculating optimal polarization combinations and allow the determination of their physical characteristics. Applying the proposed algorithms to urban environments, the building layover problem is analyzed by means of polarimetric dual-baseline InSAR measurements: the ground and building height are estimated. The techniques are validated using dual-baseline Pol-InSAR data acquired by DLR's Experimental SAR (E-SAR) system over Dresden city.