In general, the level of privacy is more compared to the privacy that you will experience at a Bed & Breakfast.
In most cases the owner gives you a key to your room with which you can lock it. And you have complete privacy. Most rooms have a private bathroom, toilet and air conditioning. And some times even a minibar. In the most cases empty, to fill by youself.
Often the space where the family lives is physically separated from that of the space intended for tourists. Usually through a private entrance or an entire floor intended for guests.
There are usually common areas such as patios or terraces where you can get in touch with other travelers or sit and talk to the owners. Some time they have a room to watch TV together.
The family is always at your service and ready to answer all your questions. But that doesn't mean you will be with them 24 hours a day.
During breakfast, ask for advice about what to see and do in this city and explore it independently.
The breakfast is always in a room only for the tourists.