Unfortunately, you have it backwards, its/it's are different from the norm.
"Its" is the possessive form of the word it, whereas "it's" is a contraction meaning "it is".
"It is a shame that the creature's possessions are broken." can be re-written correctly as "It's a shame that its possessions are broken".
When it doubt, replace your one word with 'it is.' If the resulting sentence makes sense, use 'it's.' Otherwise, save yourself the apostrophe.
Honestly, I suspect this one is on the way out. Like so many irregular bits of the language in the past. I won't be really sorry to see this one go. Though it probably won't be complete in my lifetime.
Neither will I, along with a lot of other 'charming' English idiosyncrasies.
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Great. Made myself look the fool. Ah well, thank you.
As someone who *only* communicates in English, any piffling mistakes you make put you way ahead of me in the linguistics department.
Apparently the possessive apostrophe isn't used with pronouns (like 'it').
English is a silly language.
Look at the apple, it's falling.
Then let us look upon the apple and witness its fall.
Nice example. I may steal it when teaching this. Hope you don't mind!
Think of the apostrophe as a tiny 'i', and it may help you remember that it's = it is.